April 26, 2019/InvestmentOne Report

Please click to download the Weekly Report for the week ending Friday 26th April 2019

Global Economy

·         Despite the jump in crude oil prices that was observed during the week, following the decision of the United States to put a hold on its waivers on Iran’s sanction, oil prices slightly weakened week-on-week, down marginally by 0.52% to US$71.59/barrel as at the time of writing this report. Furthermore, the United States’ economy continued to wax stronger, with a Q1 2019 GDP growth of 3.2% y/y, higher than anticipated.

Nigerian Economy

·         In the outgone week, the National Assembly announced its plan to pass the 2019 Budget next Tuesday, while the President Muhammadu Buhari reiterated his administration’ plan to boost non-oil revenue through aggressive tax collection. Elsewhere, the Minister of State for Petroleum Resources, Dr Ibe Kachikwu, said the Federal Government asked Saudi Aramco for some investment into the nation’s refineries.

Equities Market

·         The Nigerian equities market was negative in the outgone week as it lost in three of the four trading sessions of the week. This was largely attributable to a negative reaction to some of the lackluster Q1 financial scorecards posted by bellwether counters across the bourse. As a result, ASI was down 1.15% week-on-week to close at 29,740.41pts. Similarly, market capitalization declined to N11.18trillion, from N11.30trillion in the previous week.

Money Market

·         Money market rates rose in the outgone week as CBN resumed OMO auctions. Consequently, Overnight rate and Open-Buy Back increased to 17.29% and 16.43% from 10.57% and 9.86% respectively.

Bond Market

·         The bond market was somewhat positive in the outgone week as yields increased across some maturities.

Foreign Exchange Market

·         At the interbank market, the Naira gained marginally to close at 306.90 against the USD as it continues to see support from CBN’s intervention sales.

The Week Ahead

Eurozone

·         The Unemployment rate for March 2019 will be released on the 30th of April 2019

·         The GDP report for Q1 2019 will be released on the 30th of April 2019

·         The Markit Manufacturing PMI for the month of April 2019 will be released on 2nd May 2019

·         The Inflation rate for April 2019 will be released on 3rd May 2019

United States of America

·         The Mark it Composite PMI for the month of April 2019 will be released on 3rd May 2019

·         The US Fed Interest Rate Decision will be held on the 1st of May 2019

·         The Unemployment rate for April 2019 will be released on the 3rd May 2019

United Kingdom

·         The BoE Interest Rate Decision will be held on the 2nd of May 2019

·         The Inflation report for April 2019 will be released on the 2nd of May 2019

Russia

·         The Markit Manufacturing PMI for the month of April 2019 will be released on 30th April 2019

Germany

·         The Unemployment rate for April 2019 will be released on 30th April 2019

·         The Inflation rate for April 2019 will be released on 30th April 2019

·         France

·         The GDP report for Q1 2019 will be released on the 30th of April 2019

·         The Inflation rate for April 2019 will be released on 30th April 2019