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Weak start to the week, NSE ASI down 263bps

What shaped the market today?

• Nigerian stocks began the week on negative footing as sell-offs across board dragged the NSE ASI 263bps lower. Whilst Asian markets shrugged off the Friday’s global selloff, European markets slid further as investors continued to weigh the impact of Britain’s decision. U.S futures pointed to a lower open.
• The Financial Services (-408bps) sector recorded the largest decline of the day following sell down in GUARANTY (-476bps), ZENITHBANK (-612bps), and ETI (-263bps). Similarly, the Oil & Gas (-356bps) and Industrial Goods (-246bps) sectors closed lower on the back of declines in SEPLAT (-498bps), OANDO (-486bps), and DANGCEM (404bps). The Consumer Goods (-58bps) sector posted mild losses as declines in NB (-69bps), GUINNESS (-170bps) and DANGSUGAR (-493bps) overwhelmed gains in PZ (+496bps).
• NEM topped the volume chart trading 91 million units, whilst NB topped the value chart trading 9.2 million units worth N1.3 billion.

What will shape the next trading session?

• Although we note the impact of broader downbeat global market sentiment, we believe today’s losses were largely fueled by profit taking across a handful of large cap stocks following the strength of the gains recorded in recent sessions. We think there’s still some room for profit taking, and thus see likelihood for another negative close in the session ahead.