16/2/2018/InvestmentOne Report
Please click to download the Weekly Report for the week ending Friday 16th February 2018
Global Economy
· Earlier this week, the inflation figure for the month of January 2018 in United Kingdom was released, which remained unchanged at 3.00% year-on-year (y/y). Similarly, the inflation rate for January 2018 in US which was also released this week was flat at 2.10% y/y.
Nigerian Economy
· The country received positive news flow earlier in the week as the Nigerian Bureau of Statistics released the inflation report for the month of January 2018. Headline inflation moderated for the 12th consecutive month to 15.13% y/y from 15.37% in December2017 while Food sub-index also moderated to 18.92% y/y from 19.42% y/y on December 2017. Core sub-index remained the same at 12.10% y/y against December 2017.
Equities Market
· The Nigerian equities market was bearish in the outgone week as investors lost c.N180 billion week on week (w/w) over the last five trading sessions. Although, we saw improvements in the last three trading sessions of the week, the market could not recover from the huge loss of -2.41% on Tuesday.
Money Market
· Despite CBN’s sales of N17.96bn worth of OMO bills and N176bn worth of NTB in the outgone week, the OBB and O/N rates fell by -2516bps and -2600bps to close at 18.17% and 19.50% respectively. This may not be unconnected with the improvement in system liquidity following the maturity of N89.08bn worth of OMO bills and N176bn worth of NTB.
Bond Market
· The bond market was bullish in the outgone week as yields contracted across most tenors.
Foreign Exchange Market
· The NGN traded within the N305-306 levels through the week following CBN’s intervention sales of a total of US$210m to the various segments of the FX market.
The Week Ahead
· The Central Bank of Nigeria (CBN) will release the current account balance for the third quarter 2017 later in the week.
· The CBN will also release the private sector credit for January 2018 later in the week.
· The National Bureau of statistics will release the Federal Account Allocation Committee (FAAC) January 2018 Disbursement on the 20th of February 2018.
· The Debt Management Office (DMO) will be conducting a Bond auction on Wednesday the 21st of February 2018, offering N55billion worth of the 5-year bond and N65billion worth of the 10-year bond.