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Equity market opens on negative footing, down 42bps

What shaped the market today?

• The Nigerian Equity Market kicked off the week on negative footing, paring previous week’s gains amidst suppressed trade volumes. On the global scene, major bourses opened the week lower amidst widespread criticism of U.S. President’s executive order to curb immigration from seven predominantly Muslim countries.
• The Banking Sector (-115bps) was the worst performer in today’s session, pressured by declines in DIAMONDBNK (-404bps), UBA (273bps), GUARANTY (-156bps) and ZENITHBANK (-63bps). The Industrial Goods sector also closed 30bps lower on the back of losses in market heavyweight DANGCEM (-60bps). The Oil & Gas sector (-2bps) closed marginally lower, snapping a five-day positive run following mixed performances in FO (+295bps) and OANDO (-467bps). However, the Consumer Goods sector was the lone gainer in today’ session, inching 13bps higher on the back of gains in 7UP (+500bps) and DANGFLOUR (+124bps).
• Market breadth remained negative with 9 advances and 24 declines.

What will shape the next trading session?

• We are somewhat surprised of the markedly thin market volumes particularly in this period where earnings are expected to start rolling in. We think investors could be maintaining a watch-and-see approach, hence, we foresee another tepid trading session tomorrow.