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NSE ASI extends w/w losing streak

What shaped the market today?

• Thursday’s gain proved to be a dead cat bounce as the NSE ASI swung back to a negative close, pressured by losses in the Industrial sector. On the global front, Asian and European markets traded lower as the “Trump-rally” faded amidst renewed Brexit jitters and dampened appeal of emerging market equities. Also, U.S. futures indicated a slightly lower open.
• The Industrial Goods sector (-328bps) almost solely pulled the ASI under water following another round of sell-off in WAPCO (-794bps). The Consumer Goods sector (-8bps) also closed lower, on mixed performances across FLOURMILL (+482bps), DANGFLOUR (+417bps) and CADBURY (-496bps). The Financial services sector (+59bps) however clinched another positive close as gains in ZENITHBANK (+293bps) outweighed declines in STANBIC (-208bps) and GUARANTY (-60bps). The Oil & Gas sector (+62bps) also closed higher thanks to advances in MOBIL (+270bps), OANDO (+238bps) and FO (+43bps).
• Market breadth remained negative with 18 advances and 24 declines.

What will shape the next trading session?

• Notwithstanding the mixed closes across key sectors, we believe overall market sentiment remains bearish even as the ASI was on the downtrend for most part of the session. We think this could spell a weak open for the index in week ahead.