NIGERIAN WEEKLY MARKET RESEARCH REPORTS

Dear Esteemed Clients,

Kindly find below the excerpts of our Nigerian Economic and Stock Market Report for the week ended May 19, 2017.

Macroeconomic Environment

The Consumer Price Index (CPI) which measures inflation increased by 17.24 percent (year-on-year) though at a slower pace in April 2017, 0.02 percent points lower from the rate recorded in March (17.26) percent. This is the third consecutive month of a decline in the headline CPI rate, exhibiting effects of some easing in already high food and non-food prices, as well as favourable base effects over 2016 prices. Increases were recorded in all COICOP divisions that yield the Headline Index.  The top items to have recorded the highest year on year increases across all the divisions were Solid Fuels, Bread and Cereals, Meat, Liquid Fuels, Clothing materials, other articles of clothing and clothing accessories, and Fish. On a month-on-month basis, the Headline index increased by 1.60 percent in April 2017, 0.12 percent points lower than the rate recorded in March. On a month on month basis, the highest rise in prices were dominated by food items including coffee, tea and cocoa, potatoes, yam and tubers, bread and cereals, milk cheese and eggs and meat and fish. 

Stock Market Review

Analysis of the market activity in the week ended May 19, 2017 technically reveal active pessimistic tendencies as investors displayed profit taking as against bargain hunting of the previous weeks. The Nigerian Stock Market thereby closed on a negative note during the week with the All Share Index  and market capitalization of listed equities depreciating by 0.28% and 0.27% from the opening figures of 28,192.40 and N9,746 trillion  to  close at 28,113.38 and N9,719 trillion respectively.  Its year to date (YTD) return  stands at +4.61%.

Bond Market Review

A total of 6,308 units of Federal Government Bond valued at N5,480,859.20 in 3 deals were executed during the week compared with 5,201 units of Federal Government Bond valued at N5,400,088.90 in 3 deals traded in the previous auction.   

Fixed Income Market Review.

There were no transactions recorded in Treasury Bills during the week under review, however, the Central Bank of Nigeria  in the previous week sold a total of N29.14 billion 91-day treasury Bills at 13.6%, N23.45 billion 182-day Treasury bills at 17.26% and N178.03 billion 364-day Treasury  Bill at 18.82%.

Foreign Exchange Market Review

The official dollar rate closed at N305.45 to a dollar during the week under review. The naira  during the week depreciated against some major currencies. It depreciated by 0.58%, 1.84% and 2.30% against Pounds, Euro and Swiss Franc to close at N396.05, N339.60 and N310.89 respectively.