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Nigerian bourse kicks off 2017 on bearish note, down 96bps

What shaped the market today?

• The NSE ASI (-96bps) kicked off the year on a bearish note as all key sectors closed lower amidst relatively light trade volumes. In contrast, global markets traded mostly higher with investor mood catching a lift from a number of better than expected economic data. Notably, Chinese PMI data rose to 51.9 (beating the 50.7 forecast), U.K.'s PMI increased to 56.1 (the highest reading since June 2014) and French consumer prices increased 0.8% y/y, the highest level since May 2014.
• The Financial Services sector (-238bps) posted the largest drop at the start of the year following declines in ETI (-496bps), GUARANTY (-283bps) and UBA (-111bps). The Consumer Goods sector (-199bps) was next in line owing to losses across CADBURY (-496bps), NB (-405bps) and FLOURMILL (-265bps). The Oil & Gas (-49bps) and Industrial Goods sector (-18bps) also opened the year in the red amidst losses in OANDO (-489bps), FO (-25bps) and CCNN (-500bps).
• Market breadth opened negative with 13 advances and 22 declines.

What will shape the next trading session?

• Given the significantly weak market sentiment (as indicated by the low trade volumes and negative market breadth), we foresee another negative close in the session ahead.