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NSE ASI down 46bps as Energy sector extends rout

What shaped the market today?

• The Nigerian equity market closed in negative territory for the third consecutive session, with the NSE ASI shedding 46bps as most of the key sectors closed in the red. On the global front, Asian markets traded mixed whilst European markets were lower as geopolitical tensions dampened sentiment. Meanwhile, U.S. Futures pointed to a higher open with the Dow set to reach the 20,000 points milestone.
• The Oil & Gas sector (-371bps) stretched its rout to five consecutive sessions pressured by losses across FO (-974bps), SEPLAT (-500bps) and OANDO (-476bps). The Financial Services (-49bps) and Consumer Goods (-26bps) sectors also extended losses after declines in ETI (-498bps), STANBIC (-495bps), UNILEVER (-278bps) and DANGSUGAR (-380bps). Mirroring yesterday’s trading pattern, the Industrial Goods sector was yet again the lone gainer, closing 59bps higher as advances in CCNN (+499bps) and WAPCO (+248bps) offset the decline in CAP (-499bps).
• Market breadth turned negative with 20 advances and 21 declines.

What will shape the next trading session?

• With the ASI trending downwards for most part of the session amidst sustained pressure on bellwether stocks (evidenced by the magnitude of loss recorded by the NSE 30 index), we expect the market to remain bearish in the session ahead.