What To Expect From The Markets This Week - 230718

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Saturday, July 21, 2018 08:00 AM / Proshare Content


Nigeria: Economic Dashboard @ 200718

 

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 From the Editor’s Desk                                        

Presently, Nigeria’s gross foreign exchange reserve stands at $47.44billion, reflective of a 0.4% dip when compared with the previous month, June 2018. In the same vein, the foreign reserves is considered liquid as it currently stands at $46.11billion reflective of a 1.9% dip when compared to the previous month. 

Certainly, as the expected long term rate in the United States takes an upward trajectory, the casualty effect has led to a nose dive in liquidity at home. In a follow up, the hike in fund rate has triggered a relatively subdued activity in the import and export window, thereby forcing increased intervention by the Central Bank of Nigeria. Strikingly, in a clime where oil price has remained stable fused with limited swings in output; the dynamics underlines the divergence in the trajectory between asset portfolio and trade. Thus, the current negative shock to the nation’s financial account is inevitable as pinpointed in our earlier report - MPC: Trying to Hold On To Butterflies. More importantly, the stuttering in reserves obviously flags red lights.  

Although the Naira have not experienced any major gravitational pull down emanating from normalization in policies abroad - as the reserve has partly absorbed the shock; one thing is certain, the inherent price discriminatory elements in the current exchange rate policy cannot last for too long. As central banks abroad take up a hawkish tone, clamping down on multiple rates has become a necessity in order to allow a positive trifecta play out.         

 

Fig 1: Foreign Reserve     

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Source: CBN 

 

The Monetary Policy Committee will have its third statutory meeting for the year 2018 on the 23rd and 24th July, and we expect the bank to react to second round effect just as it has done in the past. Moreover, the bank has asserted that a single digit inflation will serve as a guidance for a hair cut in monetary policy rate. Therefore, we see the bank maintaining its stance by giving priority to rate conduits such as MPR and Exchange rate at the expense of money supply; regardless with price movement dampening and narrow credit deepening, there is a possibility of low capital formation in a pre-election year coupled with lingering negative output gap.  Thus, Monetary policy at some point in time will need to be conscious of growth and more forward looking rather than been reactive.

 

News Post:  Personal Statements by the MPC Members at the 118 MPC Meeting of May 21-22, 2018

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Monday July 23, 2018

The Central Bank’s Monetary Policy Committee Meeting will commence today in Abuja, just as the 2nd Capital Market Stakeholders Forum holds with the theme “Capital Market as a Catalyst for Economic Growth and Development”. 

Livestock Feeds Plc and Niger Insurance Plc will this day hold their Annual General Meeting. 

What did we miss?
 

Tuesday July 24, 2018

United Capital Plc in partnership with Proshare will this day hold a Tweet Meet focusing on Nigeria’s Outlook for H2 2018 - #NGOutlook18, while the Chartered Institute of Stockbrokers holds the Inauguration Ceremony of its President and Chairman of Council. 

The 7th Annual E-government Summit will hold this day in Abuja, while the Stears Business Summit holds in Lagos with the theme “Banking on Fintech, the Future of Money, Markets and Market places 

The Abuja Investment Expo 2018 will kick off this day with the theme “Land Development:  A Catalyst for Economic Advancement”, while the African Islamic Economic Policy Foundation holds its 2018 International Islamnomics Workshop and Exhibition in Lagos 

Abbey Mortgage Bank Plc will this day hold its Annual General Meeting, while the University of Lagos’ Department of Economics holds its 2018 Annual Public Lecture themed “Financing Infrastructural Development and State’s Fiscal Sustainability in Nigeria: Perspectives,  Challenges and the Way Forward”. 

Wednesday July 25, 2018

The Initiative for Public Policy Analysis will this day hold is Policy Rountable with the theme “Business Environment- Maximizing Economic Opportunities through Effective Anti-Illicit Trade Enforcement”. Follow @WebTVng on Twitter for Updates from the event. 

The Nigerian Stock Exchange will this day hold its Bi-annual Nigerian Capital Market Information Security Forum (NCMISF), while Ernst and Young Nigeria holds a Knowledge Sharing Session on Country by Country Reporting. 

ICTEL Expo 2018 will hold this day with the theme “Developing Efficiency and Competitiveness in the digital age” while Presco Plc holds its Annual General Meeting in Edo State.                               

Thursday July 26, 2018

The Google for Nigeria event will hold this day in Lagos, just as the Nigerian American Chambers of Commerce training course on “Effective Selling and Negotiation Skills in a tough Business Environment” and the Nigerian British Chambers of Commerce Members Evening holds. 

Omoluabi Mortgage Bank Plc, Studio Press Plc, Capital Oil Plc, CCNN Plc and Champion Breweries Plc will this hold their Annual General Meeting. 

Coworking Conference 2018 and the Association of Enterprise Risk Management Professionals ERM & Corporate Strategy Workshop will hold this day in Lagos, while the Nigeria Investment Gateway International Symposium on Investment Destinations in Nigeria will hold this day in Abuja.
 

Friday July 27, 2018

Oando Plc and The Initiates Plc will hold their Annual General Meeting this day, while the NECCIPR Round Table themed “The Youth Debate” holds in Lagos.
 

Saturday, July 28, 2018

The Young & Cerebral Solutions Hangout will hold this day in Lagos, just as the Personal Branding Workshop with Chizor Malize holds. 

  
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Check out our Events Calendar for event details and follow us on Web, TV, APP and Social Media for updates as the week unfolds. Yours to Serve!

 

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Contact for Details:

For further information, enquiry or submission of information, kindly email market@proshareng.com and research@proshareng.com Tel: 0700PROSHARE (070077674273). We are waiting to hear from you!

 

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Latest Reports This Past Week

1.      Proshare Confidential Report – June 2018 

2.      Nigeria Outlook H2-18: Caught Between Two Stools
   

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Previous Week(s) Market Outlook  

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4.     What To Expect From The Markets This Week - 250618

 

 

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Proshare Nigeria Pvt. Ltd.


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