Please click to download the Weekly Report for the week ending Friday 25th October 2019

Global Economy

·         Britain, once again, requests an extension to the deadline date of Brexit, following series of votes at the parliament during the outgone week. Elsewhere, Russia held its first ever Africa summit as it welcomed representatives from all 54 African states (including 43 heads of states/government); discussions and agreements at the summit ranged from nuclear energy to mineral extraction. In the commodity market, a draw in the U.S. inventory stockpile provided some cushion for oil, as Brent price moves to close the week on a positive.

  Nigerian Economy

·         In the outgone week, while we received news that Nigeria progresses to rank 131st on the World Bank’s ease of doing business rankings, the local economy was thrown into a state of quandary as the CBN released new circulars restricting the participation of individuals and corporates in OMO auction as well as trading same in the secondary market.

Equities Market

·         The local bourse ended negative for the fourth consecutive week, as NSE-ASI shed 0.38% to close at 26,348.73pts. Similarly, market capitalization was down to N12.83trillion from N12.87trillion.

Money Market

·         Money market rates rose in the outgone week as Overnight rate and Open-Buy Back increased to 6.86% and 6.00% from 5.86% and 5.14% respectively. The increase in rates may not be unconnected to the CBN’s OMO and FX sales which could have reduced system liquidity.

Bond Market

·         The bond market closed positive in the outgone week as yields declined across most tenors.

Foreign Exchange Market

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

The Week Ahead 

Germany

·         The Unemployment data for the month of October 2019 will be released on 30th October 2019.

·         The Inflation data for the month of October 2019 will be released on 30th October 2019.

United States

·         The Fed reserves will hold a meeting on 30th October 2019.

·         The Inflation data for the month of October 2019 will be released on 30th October 2019.

Canada

·         The Bank of Canada meeting will hold on 30th of October 2019.

China

·         The NBS Manufacturing and Non-manufacturing report for the month of October 2019 will be released on 31st October 2019.

Italy

·         The Inflation data for the month of October 2019 will be released on 31st October 2019.

Japan

·         The Bank of Japan meeting will hold on 31st of October 2019.

France

• The Inflation data for the month of October 2019 will be released on 31st October 2019.