Now that we are almost three-quarters through the year, Nigeria stock market investors might want to take a look at what factors and sectors have driven the market’s performance and why. See details below. FX Last week, the exchange rate at the Investors and Exporters Window (I&E Window) weakened by 0.49% to a record low …
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Author Archives: merchant-bank
Nigerian Stocks: Worth a second look
Coronation Fixed Income and Exchange Rate (CFEX) Update | 20 Sep ‘21
Summary Opening market liquidity was reported at NGN312.8bn on Friday (17 Sep ‘21). Overnight and repo rates closed within a range of 16.5-20.0%. The secondary market for NTBs was largely bearish due to the increased supply of NTBs and OMO bills from the auctions in the past As a result, the average NTB yield rose …
More →CIBN B/F 2021: Structural transformation and Growth
Today we highlight one of the sessions, ‘Economic Recovery’, at the recently concluded CIBN Banking and Finance conference. This was a hybrid event in Abuja, Lagos and partially virtual last week. The Covid-19 disruptions have created demand and supply shocks in the global system while unlocking new opportunities for growth. Given the pre-existing financing challenges …
More →Coronation Economic Flash Note: GDP – Q2 2021
The national accounts for Q2 2021 by the NBS show that GDP grew by 5.0% y/y compared with 0.5% recorded in Q1 2021. This is in line with our expectation. Given the output figure registered in the corresponding period of 2020, positive base effect contributed largely to this relatively healthy growth figure. However, we note …
More →MPC Decision – September 2021
Decision (unanimous)Retain MPR at 11.50% Retain the asymmetric corridor of the MPR at +100 / -700 basis point. Retain CRR at 27.5%. Retain liquidity ratio at 30%. The MPC noted the recovery in output growth in Q2 ’21 as well as improving headline PMI readings in the months within Q2 ‘21. It noted the moderate …
More →Taking stock of the LDR policy
In 2019, the Central Bank of Nigeria decided to introduce a policy that, in its view, would stimulate the economy while keeping monetary policy tight. A little over two years after its implementation, we examine the impact of the LDR policy on the banks and the overall economy. See page details below. FX Last week, …
More →Coronation Fixed Income and Exchange Rate (CFEX) Update
Summary Opening market liquidity was reported at NGN68.1bn on Friday (10 Sep ‘21). Overnight and repo rates closed within a range of 14.5-16.0%. The secondary market for NTBs was largely bearish due to the increased supply of NTBs and OMO bills from the auctions in the past weeks. As a result, the average NTB yield …
More →Broadband penetration in need of a leg-up
Digital technologies can promote growth in an economy partly due to their capacity to reduce costs and improve the quality of delivery. However, to achieve this, high-speed and reliable internet and broadband are required. The latest data released by the Nigerian Communications Commission (NCC), the industry regulator, show that internet subscriptions stood at 139.4 million …
More →Coronation Economic Note: Manufacturing sector in focus
Today we turn our attention to the recently released national accounts for Q2 2021 from the National Bureau of Statistics. The data show that GDP grew by 5.0% y/y in Q2. Although the oil economy contracted by -12.7% y/y, the non-oil economy grew by 6.7% y/y. For the latter, this is an improvement from the …
More →Nigerian Banks: H1 2021 Scorecard
The scorecard for the listed banks that have reported their H1 results is mixed. We believe that it is a matter of timing changes in interest rates and that Q3 is likely to be a better story than Q2 and H1. See details below. FX Last week, the exchange rate at the Investors and Exporters …
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