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NSE ASI tarries in red

What shaped the market today?

• §Sell pressure persisted on the Nigerian bourse as all key sectors closed under water for the third consecutive session. On the global scene, Asian markets closed lower amidst smaller than expected stimulus package approved by the Bank of Japan. European markets slipped amidst a slew of mixed earnings and a slump in oil prices whilst U.S markets also opened lower as recently released private sector job data revealed loss of jobs in the construction and goods-producing sector.
• §The Oil & Gas sector (-224bps) remained at the heart of market declines following persistent pressure on SEPLAT (-975bps) and a reversal in OANDO (-56bps). Next in line were Industrial Goods and Financial Services, down -104bps and 145bps respectively amidst declines in WAPCO (-390bps), ZENITHBANK (-208bps) and UBA (-482bps). The Consumer Goods sector also weighed on the ASI, although marginally at 23bps, on the back of losses in HONYFLOUR (-500bps), FLOURMILLS (-500bps).

§Market breadth remained negative with 17 advances and 29 declines.

What will shape the nexttrading session?

• § A look at today’s intraday performance reveals a choppy trading amidst a relatively quiet session. With no major catalyst for the market to ride on at the moment, we think the lukewarm sentiment would probably persist in the session ahead, with chances of another negative close.