The Minister of Finance, Kemi Adeosun, revealed at the weekend that ₦1.5 trillion had been disbursed for capital expenditure projects as part of the 2017 Budget, an improvement on the ₦1.2 trillion disbursed for the 2016 Budget.

The 2017 Budget will run until the end of May 2018 and the Minister expressed her optimism that the 2018 Budget would be passed soon to maintain the momentum of capital spending in the country. We note that ₦2.2 trillion was appropriated for capital spending in the 2017 Budget, giving the 2017 Budget a 68% performance rating so far. The government’s capital spending remains a key element of Nigeria’s economic strategy in terms of upgrading the country’s infrastructure and industrial base and we stress the need to improve the timing and efficacy of capital spending in order to accelerate economic development.


Despite closing out last week on a positive note (ASI up 26bps on Friday), the NSE posted a 48bps w/w decline amidst earlier weightier declines. Though the market swung into positive territory at the end of last week, we believe the underlying mixed sentiment in the market will continue to drive a sideways trading pattern on the exchange today.

Stock Watch:

DIAMONDBNK has shed 10% over the last five sessions. The stock was one of the biggest losers for last week (-9.95% w/w). The Company released Q1’18 results on Friday reporting ₦48 billion (-2% y/y) in Revenue and ₦785 million (-82% y/y) PAT. The stock currently trades at a price of ₦1.90 and has returned 27% ytd.

Fixed Income:

Following the heavy sell-offs at the end of last week, there were some signs of market recovery towards the end of Friday’s session. In the absence of an OMO auction today, we anticipate a less frantic start to trading for the week.


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