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NSE ASI opens on back foot, down 70bps

What shaped the market today?

• The NSE ASI opened the week 70bps lower, dropping below 26,000 points for the first time in six months, as all key sectors closed in the red. On the global scene, European markets traded higher whilst most Asian markets slipped as investors continued to react to the results of the U.S. presidential election. However, the Nikkei closed higher, buoyed by a weaker yen and better-than-expected economic data (Japan’s Q3 GDP grew at an annualized 2.2% y/y beating a forecast of 0.9% y/y). The Dow opened at a record high driven by gains in financial stocks.
• The Oil & Gas sector led the market declines, down 240bps following losses in FO (-974bps) and OANDO (-488bps). The Financial Services sector (-214bps) followed suit on the back of declines in ZENITHBANK (-416bps), DIAMONDBNK (-297bps) and GUARANTY (-223bps). The Consumer Goods (-31bps) and Industrial Goods (-17bps) sectors also closed lower amidst declines in PZ (-437bps), GUINNESS (-11bps) and CAP (-466bps).
• Market breadth remained negative with 10 advances and 22 declines.

What will shape the next trading session?

• We highlight that investor sentiment remains bearish as revealed by the sell-off across sectors. On this note, we believe the ASI could shed more points in the coming session.