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NSE ASI recedes into the red, down 177bps w/w

What shaped the market today?

• Yesterday’s marginal gains proved to be a dead-cat-bounce on the Nigerian bourse at the close of today’s trading session as heavier losses across most key sectors pulled the NSE ASI 70bps lower. On the global scene, Asian and European stocks traded lower on Friday as investors remained cautious ahead of the closely watched U.S. jobs report and after a dramatic plunge in Pound Sterling early in Asia trading. U.S markets traded lower in early trading hours as U.S job reports missed expectations (156,000 jobs were added falling short of Reuters estimate of 176,000).
• The Industrial Goods sector (-174bps) again led today’s losses due to continued sell-offs in WAPCO (-484bps). The Financial Services (-166bps) and the Consumer Goods (-108bps) sectors also posted heavy losses no thanks to declines in ZENITHBANK (-482bps), GUARANTY (-172bps), GUINNESS (-974bps) and NESTLE (-184bps). The Oil & Gas sector (+15bps) was the only key sector that closed in the green, buoyed by some recovery in OANDO (+150bps).
• Market breadth remained negative with 13 advances and 20 declines.

What will shape the next trading session?

• Considering the array of mid-large caps that remained under pressure at the close of the session, we believe the ASI could be opening lower in the week ahead.