NSE-ASI Performance Down 1.17%, Week-on-Week to Close at 27,306.81 Points

August 9, 2019/InvestmentOne Report

 

Please click to download the Weekly Report for the week ending Friday 9th August 2019

Global Economy

·         As the trade spat between the two largest economies continues to intensify, with China devaluing its currency twice this week alone, warning signs of a possible global recession begin to flash. Similarly, the U.K’s economy shrank for the first time in 7 years, while oil price heads for another weekly decline. What a week it was for the global economy!

Nigerian Economy

·         In the outgone week, we witnessed the Naira being quoted weaker as foreign investor’s exited local bonds and businesses repatriated dividends, just as developments in the global space saw the continued loss of Brent oil after entering bear market. Lastly, the Federal Government still struggles to allocate the minimum wage.

Equities Market

·         The Nigerian equities market closed negative in the outgone week having lost in three out of the five trading sessions. As such, NSE-ASI performance was down 1.17%, week-on-week to close at 27,306.81pts. Consequently, market capitalization was down to 13.31trillion from 13.46trillion.

Money Market

·         Money market rates increased in the outgone week as Overnight rate and Open-Buy Back jumped to 12.14% and 12.86% from 6.43% and 5.64% respectively. The increase in rates may not be unconnected to the CBN’s resumption of OMO auction this week which may have reduced system liquidity.

Bond Market

·         The bond market was bearish in the outgone week as yields increased across most maturities.

Foreign Exchange Market

·         At the interbank market, the Naira lost 0.02% to close at N306.90 against the USD as it continues to see support from CBN’s  intervention sales.

The Week Ahead 

Nigeria

·         The CPI and Inflation report  for the month of July 2019 will be released on August 16th 2019.

Euro Area 

·         The Inflation report for the month of July 2019 will be released on 19th August 2019.

·         The Balance of Trade for the month of June 2019 will be released on 16th August 2019.

United States

·         The Inflation rate data for the month of July 2019 will be released on 13th August 2019.

United Kingdom

·         The Inflation rate data for the month of July 2019 will be released on 14th August 2019.

·         The Unemployment rate data for the month of June will be released on 13th of August 2019.

Japan

·         The Balance of Trade for the month of July 2019 will be released on 19th August 2019.

Germany

·         The Inflation rate for the month of July 2019 will be released on 13th August 2019.

France

·         The Inflation rate data for the month of July 2019 will be released on 14th August 2019.

·         The Unemployment rate data for the month of June will be released on 14th of August 2019.

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