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NSE ASI posts week's fourth decline

What shaped the market today?

• The Nigerian bourse closed lower for the fourth time in as many sessions this week, although with softer losses (ASI down 21bps) amidst increased market volatility. Global equities traded mixed amidst a drop in oil prices and as investors await comments from U.S fed chair for hints on outlook on interest rate.
• The Oil & Gas sector (-157bps) stretched its losing streak to four sessions on the back of persistent sell pressure on FO (-500bps) and as TOTAL shed 482bps. Also, the Consumer Goods (-27bps) closed lower following declines in CADBURY (-492bps) and NB (-59bps). The Industrial Goods sector (-19bps) swung into the red after CAP lost 498bps and ASHAKACEM dropped 271bps on market reaction to its proposed voluntary delisting from the NSE. The Financial Services sector (+19bps) however posted modest gains as advances in ETI (+299bps) and ACCESS (+185bps) were trimmed by declines in GUARANTY (-47bps), WEMABANK (-339bps) and DIAMONDBNK (-333bps).
• Market breadth remained negative with 13 advances and 26 declines.

What will shape the next trading session?

• Whilst we note that broad market sentiment remains weak, we highlight the improving interest in a handful of large caps, particularly banking stocks. That said, we do not rule out the possibility of a reversal at week close.