August 18, 2025/United Capital Research
Below are key insights; please refer to the full report for complete recommendations.
Global Economy:
o The FOMC of the US Federal Reserve may cut rate in Sept. 2025
o However, inflation reading will be a key factor in rate cut decisions
o Yield on Eurobond and other Dollar assets may continue to drop
Domestic Economy:
o Inflation rate expected to drop to 21.77% in July down from 22.22% in June 2025
o MPC of CBN may consider an interest rate cut at its September 2025 meeting
o This could create opportunities for fixed income investors, depending on their strategy
o More companies may approach the capital market to borrow funds
o FX stability expected and in the region of N1,510 – N1,530/US$1
Equity Market:
o A calm market is expected in August
o Some banks have sent dividend payment proposals to CBN
o Their stocks may appreciate when results are results
o There may be profit taking in the insurance stocks
Fixed Income Market:
o Yields on NTBs to trade in the region of 15%-18%
o Yields on OMO should hover around 23%
o Expect total inflows of N2.37tn to hit the market in August
o This represents 134.41% increase from July’s inflows of N1.01tn
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