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NSE ASI extends string of losses, down 79bps

What shaped the market today?

• The Nigerian bourse extended its string of losses, as declines across key sectors pulled the NSE ASI (-79bps) further into the red. On the global front, whilst Asian markets traded mostly higher amidst a rise in oil prices (during Asian trading hours), European stocks traded lower as investors overlooked better-than-expected fall in U.K. unemployment rate to a decade low of 4.8%. U.S. futures pointed to a lower open ahead of the release of a number of economic data.
• The Oil & Gas sector (-179bps) led today’s decline following continued losses in FO (-743bps) and OANDO (-488bps). Following yesterday’s rebound, the Financial Services (-123bps) and Consumer Goods (-95bps) sectors swung into negative territory amidst declines in GUARANTY (-183bps), ZENITHBANK (-139bps), 7UP (-974bps) and NESTLE (-184bps). The Industrial Goods sector however inched 8bps higher after WAPCO erased early-session loss to close 23bps higher.
• Market breadth remained negative with 6 advances and 33 declines.

What will shape the next trading session?

• We expect the bearish trading to persist in coming sessions as investor appetite for equities remain weak.