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 June 09, 2017.

Macroeconomic Environment

The National Bureau of Statistics (NBS) reported that Nigeria’s economy contracted (-0.5% YoY in Q1 17) at its slowest pace since the commencement of recession in Q1 16. The improved economic picture stemmed from both oil and non-oil GDP, with the latter recording its first growth in three quarters. Buoying the non-oil segment is the rebound in Manufacturing (+1.4% YoY) and Services (+1.0% YoY) GDP as well as resilience in Agriculture output (+3.4% YoY), which continues to benefit from favourable government policies, attractive prices, and high export demand. On manufacturing, the improved FX supply which aided the importation of critical raw materials underpinned growth in that segment, while recovery in Services, after three consecutive quarters of contraction, largely emanated from the ICT sub-sector (+2.7%).  

Stock Market Review

Analysis of the market activity in the week ended June 02, 2017 technically reveal optimistic pattern as investors continued to display improved bargain hunting towards stocks that are market leaders and position for interim half year reports. The Nigerian Stock Market thereby closed on a positive note during the week with the All Share Index  and market capitalization of listed equities appreciating by 6.07% from the opening figures of 31,371.63 and N10,845 trillion  to  close at 33,276.68 and N11,504 trillion respectively. Its year to date (YTD) return stands at +23.82%.

Bond Market Review

A total of 10,860 units of Federal Government bond valued at N10,195,673.52 in 10 deals were traded during the week under review compared with 3,786 units of federal Government bond valued at N3,805,690.18 in 4 deals traded in the previous auction.   

Fixed Income Market Review.

The Central Bank of Nigeria during the week sold N26.14 billion 91-day treasury bills at 13.40%, N11.01 billion 182-day treasury bills at 17.14% and N80.00 billion 385-day treasury bills at 18.65%.However there were no transactions recorded in treasury bills during the previous week.   

Foreign Exchange Market Review

The official dollar rate closed at N305.60 to a dollar during the week under review. The naira  during the week appreciated against some major currencies. It appreciated by 0.82%, and 0.24% against Pounds, and Euro,  to close at N389.49 and N341.54 respectively.