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NSE ASI extends losing streak, down 107bps

What shaped the market today?

· The Nigerian Bourse continued to seek its first positive close of the year as sizeable declines in select market heavyweights pulled the NSE ASI 107bps lower. On the global scene, major bourses across Europe traded mixed amidst the release of impressive full year earnings from UK’s Housebuilding sector and JPMorgan’s decision to revise lower its valuation on a few European insurers. Also, the U.S. opened mixed as investors assessed a series of economic data and the Federal Reserve's thoughts on President-elect Donald Trump's policies.

· The Industrial Goods sector (-181bps) came as the biggest drag in today’s session largely on the back of a 401bps decline in sector heavyweight DANGCEM. The Consumer Goods (-29bps) and the Oil & Gas (-14bps) sectors also closed lower amidst respective losses in blue-chip GUINNESS (-500bps) and FO (-341bps). The Financial Services sector however recorded its first green close of the year, buoyed by advances across a number of Tier-1 banks – ACCESS (+496bps), FBNH (+330bps), GUARANTY (+249bps), UBA (+222bps), and ETI (+199bps).

· Market breadth turned positive with 17 advances and 16 declines.

What will shape the next trading session?

· We highlight that today’s market closing position was largely distorted by the loss in market heavyweight - DANGCEM. Excluding the loss in the stock, the ASI would have closed in the green. Consequently, considering the improved market sentiment (as indicated by the positive market breadth), we foresee a positive close in tomorrow’s trading session.