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NSE ASI opens lower as Consumer stocks cloud gains

What shaped the market today?

• The Nigerian equity market opened the week on the back foot, down 38bps as persistent losses across consumer goods stocks continued to undermine gains across other key sectors. Global stocks traded higher following a surge in copper prices (due to supply disruptions at two major copper mines) and amidst optimism surrounding the meeting between U.S. and Japan leaders. U.S. futures also pointed to a higher open as investors eye another batch of corporate earnings.
• The Consumer Goods sector (-231bps) continued to underperform other key sectors following persistent down trading in VITAFOAM (-522bps), NB (-500bps) and NASCON (-500bps). Meanwhile, all other key sectors held on to gains from the previous session. Leading advances was the Industrial Goods sector (+59bps), supported by gains in BETAGLAS (+499bps), DANGCEM (+54bps) and WAPCO (+53bps). The Banking (+31bps) and the Oil & Gas (+21bps) sectors followed closely on the back of advances in ZENITHBANK (+188bps), GUARANTY (+100bps), SEPLAT (+133bps) and FO (+24bps).
• Market breadth turned negative with 16 advances and 18 declines.

What will shape the next trading session?

• Whilst we note the sustained improvement across most key sectors, we highlight that the persistent negative sentiment in the consumer goods sector could further weigh on the NSE ASI performance in the session ahead.