September 6, 2019/InvestmentOne Report 

Please click to download the Weekly Report for the week ending Friday 6th  September 2019

Global Economy

·         Just as global markets breathed a sigh of relief due to China’s willingness to soldier on with trade talks, the U.K’s Prime minister Boris Johnson said he would rather die than delay Brexit passed the Halloween deadline, even as he suffered three defeats in the outgone week.

Nigerian Economy

·         In the outgone week, the National Bureau of Statistics (NBS) released the GDP numbers of Q2 2019 and the growth recorded in that quarter is not so decent. While  increase in oil production was sure to have boosted the performance of the oil sector, the non-oil sector recorded a slower momentum in growth compared to the previous quarter. Furthermore, it was revealed how constraints in the power sector hampers distribution of power to customers.

Equities Market

·         The Nigerian equities market extended its bearish streak for a second consecutive week, losing 1.38% in the outgone week. Resultantly, NSE-ASI closed at 27,146.57pts. Similarly, market capitalization was down to N13.21trillion from N13.39trillion.

Money Market

·         Despite the CBN’s OMO auction, money market rates declined in the outgone week as Overnight rate and Open-Buy Back fell to 3.86% and 3.21% from 10.50% and 9.29%  respectively. The decline in rates may not be unconnected to the OMO maturity that hit the system on Thursday.

Bond Market

·         The bond market closed negative in the outgone week as yields rose across most tenors.

Foreign Exchange Market

·         At the interbank market, the Naira remained somewhat flat as gained marginally by 0.02% against USD to close at N306.95 as it continues to see support from CBN’s  intervention sales. 

The Week Ahead 

Nigeria

·         The Balance of Trade for Q2 will be released on 10^th September 2019.

·         The Inflation rate data year on year for the month of August 2019 will be released on 16^th September 2019.  

Euro Area 

·         The Balance of Trade for the month of July 2019 will be released on 12^th August 2019. 

United States

·         The Inflation rate data year on year for the month of August 2019 will be released on 12^th September 2019. 

United Kingdom

·         The Balance of Trade for the month of July 2019 will be released on 9^th September 2019.

·         The Unemployment rate data for the month of July will be released on 10^th of September 2019 

Japan

·         The GDP Growth Rate for Q2 will be released on 9^th September 2019.

·         The Balance of Trade for the month of July 2019 will be released on 9^th September 2019. 

Germany

·         The Inflation rate year on year for the month of August 2019 will be released on 12^th September 2019.