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NSE ASI opens on bearish note, down 83bps

What shaped the market today?

• Bearish trading persisted on the Nigerian bourse at week open as the NSE ASI closed 83bps lower, pressured by declines across key sectors. Meanwhile, global markets traded mostly higher as investors continued to react to a flurry of executive orders passed by the U.S. President, the latest aimed at overhauling the Dodd Frank Act (a financial regulation act passed in the aftermath of the 2009 financial crisis).
• The Banking sector surrendered its ytd positive return as losses in UBA (-400bps), DIAMONDBNK (-225bps), ACCESS (-221bps) and ZENITHBANK (-148bps) plunged the sector 92bps under water. The Industrial Goods (-85bps) and Oil & Gas (-52bps) sectors also closed in the red following declines in CUTIX (-190bps), DANGCEM (-178bps), TOTAL (-224bps) and OANDO (-104bps). The Consumer Goods sector however edged 2bps higher as gains in DANGSUGAR (+67bps) and NB (+29bps) were trimmed by weightier losses in PZ (-495bps) and GUINESS (-42bps).
• Market breadth remained negative with 8 advances and 26 declines.
• What will shape the next trading session?

• We expect further losses on the bourse in tomorrow’s session given the prevalent bearish market sentiment.