Following the inauguration of the two new Deputy Governors (DG) of the Central Bank of Nigeria (CBN), the Governor, Godwin Emefiele has reshuffled the portfolios of the DGs. Mrs. Aisha Ahmad, initially appointed as the Deputy Governor for Economic Policy, has been swapped with Dr. Okwu Joseph Nnanna, previously the Deputy Governor for Financial System Stability.

Meanwhile, Mr. Edward Adamu, recently appointed as a DG, will assume the role as DG of Corporate Services whilst Mr. Adebayo Adelabu retains his portfolio as Deputy Governor, Operations Directorate. We note that assigning Mrs. Ahmad to financial system stability is a reasonable move considering her vast experience in the banking industry. Overall, the full complement of Deputy Governors at the CBN is necessary as the apex bank delivers on its mandate of financial supervision and regulatory oversight.

Equity: The Nigerian equity market rounded off last week on a mixed note, losing 8bps at week close (-160bps w/w) to further trim ytd returns to 6.8%. Notwithstanding the negative close for last week, we highlight that market sentiment was more upbeat at week close and as such we foresee further mixed trading with a mild positive tilt today.

Stock Watch: WAPCO recently released FY’17 results, reporting a Loss-after-tax of ₦35 billion versus FY’16 PAT of ₦17 billion and Vetiva expectation of ₦9 billion. Nevertheless, the Board of Directors proposed an FY’17 dividend of ₦1.50 (FY’16: ₦1.05, Vetiva: ₦0.50). The cement giant currently trades at ₦44.20 and has lost 2% ytd.

Fixed Income: Last Thursday’s mop up indicates the CBN’s intention to maintain its grip on system liquidity and we expect this stance to cap buying today.