August 31, 2017/Cowry Asset
We are pleased to release our H1 2017 Review & Outlook for H2 2017 for your reference. …click here for details.
Find below the executive summary for your perusal
Executive Summary
Global economic activities continued to wax strong amid sustained expansion in both manufacturing and services sectors. The boost in the global economy, which was driven by developed economies, was partly attributed to a number of factors such as relatively low crude oil prices which was particularly beneficial to advanced economies, accommodative monetary policy stance in developed economies, and improvement in business and consumer sentiments.
The Nigerian economy improved in the first half of 2017 compared to a relatively drab second quarter of the preceding year which saw worse economic conditions. Though not yet out of the woods, the local economy continued to crawl out of recession as latest output data showed that the decline in real GDP slowed to -0.52% in Q1 2017 from -1.73% and -0.67% recorded in Q4 2016 and Q1 2016 respectively.
In the review period, the various foreign exchange market segments tended towards convergence on the back of afore-mentioned foreign exchange policies. Specifically, the introduction of the I&E FX Window, which recorded inflows worth USD3.13 billion between April and June, absorbed some of pressure from the alternative market segments, resulting in the strengthening of the Naira against the USD in those market segments.
Finally, overall market performance indicator – the NSE All Share Index – increased year-to-date by 23.23% to 33,117.48 points as at 30th June 2017 (from 26,874.62 points as at 30th December 2016). The pronounced positive return was due to a number of factors including the return of investor (foreign and local) confidence in the foreign exchange market, mainly as a result of CBN’s introduction of the IE&FX window, CBN’s intervention in the FX market backed by an increase in foreign reserves due to increasing global oil prices and a general financial system liquidity ease