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What To Expect From The Markets This Week - 191118

Market Updates	2249 VIEWS
Market Updates
2249 VIEWS

Sunday, November 18, 2018 08:00 AM / Proshare Content

Nigeria: Economic Dashboard @ 191118

From the Editor’s Desk

Source: ARM Weekly Economic & Financial Commentary

Global Economy

In the U.S, CPI data released for the month of October showed that inflation rate came in stronger during the month, rising 2.5% YoY from 2.3%YoY in the prior month. The uptick was largely driven by higher energy and housing cost. However, the CPI less volatile components (i.e food & energy) moderated to 2.1% YoY (vs September: 2.2% YoY). In Asia, preliminary estimates of Japan’s GDP revealed the economy contracted by 1.2% YoY for the third quarter of 2018. The numbers reflects the natural disasters which struck the economy during the summer, dragging both the domestic demand and country’s exports. Elsewhere, in sync with the preliminary estimates released in October, the Euro Zone economy grew at its slowest pace in four years in the third quarter of 2018 by 1.7%. The contraction stemmed largely from growth slowdown in Germany, France and Italy.

Domestic Economy

The FG completed its $2.86 billion (N856.8 billion) Eurobond issuance on Wednesday, taking the country’s total Eurobond issuance for the year to $5.3 billion. The amount raised will be used to fund 2018 capital expenditure which runs exactly one year from the approval of the budget. The offer is made up of a $1.18 billion (7-Yr), $1 billion (12-Yr), and $750 million (30-Yr) priced at respective rates of 7.625%, 8.75% and 9.25%. Though, the issuance was oversubscribed, the issue appears expensive when compared to February 2018 Eurobond Issuance. We think the higher pricing reflects ongoing EM risk off emanating from the recent spate of interest rate hikes in the US (2%-2.25%) – that have resulted in higher US treasury yields (10-year: +70bps Ytd to 3.1%), the ongoing trade spat between US and China and the recent currency bouts faced by major EM economies earlier in the year.

Equities

The Nigeria equity market closed negative with the All Share Index moderating by 0.44% WoW to close the week at 32,058.28 pts. The negative performance was spurred by sell pressure in Nestle (-9.99%), Access (-9.92%) and Oando (-9.69%). Dissecting the sectoral performance, the Food, Personal Care, Insurance and Oil & Gas recorded gains during the week, as opposed to the Banking, Brewers, Cement, Construction and Real Estate sectors that closed negative.

Fixed Income

Activities in the fixed income market remained largely bearish, with average yields expanding 10bps WoW to 15.03%. The upswing in the naira yield curve was driven by elevation at the short and long ends of the curve. On the former, NTB yields which had been on the rise for most part of the week, was further magnified by liquidity tightening by the CBN from the sale of OMO (N468 billion) on Thursday. Bond yields towed similar path, rising 3bps WoW to 15.42% due to sell off at the long end of the curve.

Weekly

News Post: Nigerian Banks’ Performance – H1 2018

Read the Full Report HERE

Proshare Confidential

Other Developments

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Monday, November 19, 2018

The National Bureau of Statistics will on this day release the Daily Energy Generated and Distributed in Q3 2018 while First City Monument Bank will same day hold its training on taxation for Women in Entrepreneurship Day

The Central Bank of Nigeria will on this day hold its Monetary Policy Committee Meeting in Abuja while the FMDQ Housing Summit holds same day by 9am, FMDQ Office Victoria Island

France will on this day release its 12, 6 and 3 months BTF Auction while the United State of America will release the NAHB Housing Market Index November

Tuesday, November 20, 2018

UACN Property Development Company Plc will on this day hold its Annual General Meeting at Arthur Mbanefo Hall, Golden Tulip Festac Lagos.

The National Bureau of Statistics will on this day release the Automobile Gas Oil and Liquefied Petroleum Gas Report October 2018

The Central Bank of Nigeria will on this day hold its Monetary Policy Meeting on the Lunch of Former President Goodluck Jonathan while the VOW2018 /Conference & Awards will hold same day with the theme Women Beyond Barriers Accountability & Governance at Sheraton Hotel Abuja.

Wednesday, November 21, 2018

The National Bureau of Statistics will on this day release the CPI and Inflation Report October 2018

The Caritas Reputation Leadership Roundtable/Book Presentation will hold this day with the theme Ethics, Reputation & Technology in a VUCA Economy in Radisson Blu, Victoria Island Lagos.

The 4th Nigeria Tourism Investor Forum & Exhibition is scheduled to hold this day at Sheraton Abuja Hotel and Towers while the West African Leadership Summit holds same day at Lagos Oriental Hotel.

SME FAST TRACK 2018 is scheduled to hold this day with the theme Woman in Business Challenges & Opportunities at D’podium International Convention Centre” 31b Aromire Ave, Ikeja, Lagos

Thursday, November 22, 2018

Corporate Farmers-Financing Agric Commodity Value Chain Workshop will hold this day at the The NSE Event Centre 20th Floor, Stock Exchange House 2-4 Customs Street, Lagos while The Investment Committee of ACAP will hold same day with a focus on Canary Growth Fund and ACAP Income Fund in Ikoyi, Lagos

Friday November 23, 2018

The National Bureau of Statistics will on this day release the Selected Food Prices and Transport Fare Watch for October 2018 while the Eurozone will release the Manufacturing Purchasing Manager Index for November 2018

Saturday November 24, 2018

Wiscar to Hold its 2018 Annual Leadership and Mentoring Conference this day with the theme Enriching Lives By Telling Our Own Stories at Muson Center, Onikan, Lagos while the International Summit of Leader Award 2018 holds same day with the theme Ending Youth Slavery & Economic Development in Africa at University Of Lagos Akoka-Yaba Lagos

Sunday November 25, 2018

The Pearl Awards Nigeria 2018 is scheduled to hold this day with the theme Sustaining the winning Edge at Convention Centre Eko Hotel & Suits, Victoria Island, Lagos

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