Weekly Economic and Financial Commentary - Week Ended Nov 08, 2019

Proshare

Saturday, November 09, 2019 / 05:00PM / By ARM Research 

 

Global Economy

The US reported a decline in trade deficit to $52.5 billion in September, down $2.6 billion from $55 billion in August and in line with consensus expectation. The outturn mirrors faster decline in imports, which dropped by $4.4 billion to $258.4 billion, relative to exports (- $1.8 billion to $206 billion). Notably, US' deficit with China, Mexico, EU and Japan narrowed, while its deficit with Canada widened. China also released trade balance for October which showed an increase in trade surplus by $3.16 billion to $42.81 billion. This was spurred by a faster decline in im-ports than in exports. Exports were down $5.2 billion MoM (-2.4%) to $212.93 billion while imports fell by $8.4 billion MoM (-4.9%) to $170.1 billion. According to China's figures the October trade balance with the US swung by $0.54 billion, in China's favour, to give them a trade surplus of $26.42 billion. Meanwhile, optimism regarding trade talks went up a notch after Chinese officials stated progress was been made on negotiation which could see to a rollback of some previous tariffs placed by both parties.

 

Domestic Economy 

This week, President Buhari delivered a memo which approved the extension of border closure with adjoined countries till 31st of January 2020. Against this backdrop, new conditions for reo-pening of the border were given by the minister of Foreign Affairs. In a bid to prevent dumping and ensure safeguard measures, the rule of origin for imports - a criteria needed to determine the national source of a product - must be adhered to. Hence, goods produced in ECOWAS member states must be in majority, while goods produced outside the region should have an added value above 30% by an ECOWAS country. Furthermore, repackaging of goods will not be condoned. It is worth mentioning that reopening of the border is largely hinged on agreements from the tripartite meeting between Niger, Benin Republic and Nigeria.

 

Equities

The Nigerian bourse ended the week in green as gains particularly on Monday (+41bps) and Friday (+48bps) trading muted losses observed every other day of the week. Consequently, the ASI as well as Market Cap increased by 8bps WoW to 26,314.49 pts and N10.3 billion respectively. Banking sector (+8.07%) anchored the gains while other sectors closed negative, with bulk of the decline seen in Personal Care (-20.45%) WoW. On stock performances, ACCESS (+17.95%), FCMB (+16.25%), UBA (+13.79%), GUARANTY (+13.49%), CCNN (+10.06%) recorded gains muting declines in UNILEVER (-26.59%), INTBREW (-25.4%) and DANGCEM (-2.47%) WoW amongst others.

 

Fixed Income

Earlier today, the apex bank announced plans to increase participation in OMO secondary market in a bid to improve liquidity of the OMO bills. This will be done by providing one-way quotes for bills across all tenors. The announcement came a day after OMO auction on Thursday, wherein N300 billion worth of OMO bills was offered but was under-subscribed by N67.5 billion. Thus, only N232.5 billion was sold as against maturing bills of N365 billion, while the 1yr stop rate declined 2bps to 13.3%. In the secondary market, average yields recovered from last week's 58bps decline to close this week 19bps higher at 12.98%. This was driven by contrasting performances at both ends of the curve - bonds declined by 28bps WoW to 12.89% while NTBs rose 66bps WoW to 13.08%.

 

 

Take-Away For The Week

 

Foreign Currency flows through the IEW ($'bn) 

This week, we feature foreign currency flows through the Investors and Exporters Window (IEW). Despite outflows softening over the month of October, inflows declined at a faster pace mirroring decline in offshore flows. Consequently, the IEW saw a net outflow over the month.


Proshare Nigeria Pvt. Ltd.

Research 234 (1) 2701653  research@armsecurities.com.ng

 

Nigeria: Economic Dashboard @ 081119  


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

 

Proshare Nigeria Pvt. Ltd.

 

Do you wish to be included in the Events Calender? 

Kindly email business@proshareng.com or/and market@proshareng.com Tel: 0700PROSHARE (070077674273) to share information about your Business, Economic and Financial Markets event.


Proshare Nigeria Pvt. Ltd.


Most Recent Weekly Commentaries

1.      Weekly Economic and Financial Commentary - Week Ended Nov 01, 2019

2.     Weekly Economic and Financial Commentary - Week Ended Oct 25, 2019

3.     Weekly Economic and Financial Commentary - Week Ended Oct 18, 2019

4.     Weekly Economic and Financial Commentary - Week Ended Oct 04, 2019

5.     Weekly Economic and Financial Commentary - Week Ended Sept 27, 2019

6.     Weekly Economic and Financial Commentary - Week Ended, Sept 20, 2019

7.      Weekly Economic and Financial Commentary - WE 13 September 2019

8.     Weekly Economic and Financial Commentary - WE 16 August 2019

9.     Weekly Economic and Financial Commentary - WE 09 August 2019

10.  Weekly Economic and Financial Commentary - WE 02 August 2019

11.   Weekly Economic and Financial Commentary - WE 26 July 2019

12.   Weekly Economic and Financial Commentary - WE 19 July 2019

 

Proshare Nigeria Pvt. Ltd.

 

Related News

1.      October 2019 Macroeconomic Update - Comercio Partners

2.      Prof P.L.O Lumumba To Speak At 6th GODDY JIDENMA Foundation BI-Annual Public Lecture

3.      What To Expect From The Markets This Week- 111119

4.      Can Saudi Arabia Hold OPEC Together?

5.      Oil Markets: Deja Vu As The Trade War Talks Flatter To Deceive

6.      The Steam is Sizzling Out - Inflation To Continue Its Upward Trajectory In October

7.      IWEC Foundation Appoints Firstbank's Ibukun Awosika as New President of Its Board of Directors

8.      NASD OTC Market CAP Increased By 0.36% WoW To Close At N504.17bn

9.      Market Review and Round-Up of Corporate News Announced During The Week Ending 081119

10.   Investors Gain N10.31bn WoW As NSEASI Inches Up By 0.08% To Close The Week Positive

11.   WIMBIZ 2019: Nigeria Must Improve Its Global Ranking On Gender Gap - Erelu Bisi Fayemi

12.   2019 Finance Bill: 20 Sweeping Changes To Nigeria's Tax Laws That May Affect You

13.   Moody's Rating: Life-Saver to South Africa's Economy?

14.   Ecobank Transnational Incorporated Appoints Deepak Malik As A Director; Monish Dutt Departs

15.   TAT Judgement On Taxation Of Dividend Paid From Tax-Exempt Income

16.   Stakeholders At AICIF 2019 Urge For Expansion of Sukuk, Waqf and Takaful

17.   October 2019 Macro-Economic Update - Sluggish FPI Flows But CBN Maintains The Balance

18.   The Key Changes In The 2019 Finance Bill - Focus on Taxation

19.   International Breweries Q3 2019 Results Review: Outlook For Post-Rights Earnings Still Bearish

20.   CCNN and Obu Cement Merger Update: Excerpts From The Scheme Of Merger

21.   Nigeria in 1min: Economic, Business and Financial Headlines - 081119

22.   FGN Reiterates Commitment to Deepening the Capital Market to Attract Foreign Investments

23.   Customs Suspends Petroleum Products Supply To Filling Stations Within 20 Kilometers To All Borders

24.   Innovating Justice Challenge 2019 - Regional Finals Finalists' Announcement

25.   NSE CEO's Speech At 2019 Osun State Facts Behind The Economy

26.   The Threat of Inequality of Opportunity

27.   Sectoral Collaboration; a Pathway to Growth of the Telecommunications Industry

28.   Nigerian-British Chamber of Commerce Inaugurates 16th President

29.   Investors Lose N17.24bn As Stock Market Maintains Negative Posture


Proshare Nigeria Pvt. Ltd.


Proshare Nigeria Pvt. Ltd.

 

 


READ MORE:
Related News
SCROLL TO TOP