Breakfast Report: The Week Ahead, Stock Watch & Recommendations – Vetiva

Must Read

FG, States, LGAs share N528.39bn FAAC allocation in Jan 2021

The Federation Account Allocation Committee (FAAC) disbursed the sum of N619.34bn to the three tiers of government in December...

How To Block Your Bank Account And SIM Card In Case Of Emergency

Losing your phone and wallet or having them stolen can be very frustrating. However, in case that happens to...

List of United Bank for Africa (UBA) Sort Codes & Branches (with addresses) in Nigeria

The sort code is a number that usually identifies both the bank and the branch where an account is held. The sort...
- Advertisement -

Last week, Brent crude price hit a 7-month low, with the benchmark falling to as low as $56.75/bbl, down 5% w/w. The bearish trading pattern was driven by increasing global growth pessimism on the back of the most recent breakdown in trade talks between the U.S. and China. To recap, the U.S. announced a new round of tariffs on Chinese imports from September 1, prompting a decision by Beijing to weaken the Renminbi against the U.S. dollar – an action that makes U.S. imports more expensive. However, Brent rebounded to above $60/bbl at the start of this week on the back of news that the new round of tariffs would be delayed. Whilst the outlook for demand remains weak, U.S. oil stockpiles have continued to rise, adding further pressure on oil prices. At the current price, Brent crude currently trades just at Nigeria’s budget benchmark of $60/bbl, with further uncertainty increasing the country’s inherent risk of oil revenue shortage.

Equity: The Nigerian Equity market remained pressured as market bellwethers continued to drop to year-lows. We expect the bearish trading pattern to persist, as the general sentiment around the market remains weak.

Read Also:  Equity market sustains uptrend with a gain of 0.76%

Stock Watch: The five Tier I banks recorded declines as sell pressure on the heavyweights drove the Banking index 159bps down. We expect the sector to remain pressured until the release of H1’19 results. However, the current prices of the big names in the sector create an ample opportunity for long term investors. The Banking sector depreciated by 6.05% w/w.

Fixed Income: With a PMA scheduled for today and a truncated trading week, we expect yields to advance at a slower pace in the T-bills space. We also expect bond yields to continue to advance, as sentiment remains weak.

- Advertisement -
Read Also:  Equity market sustains uptrend with a gain of 0.76%

- Advertisement -
Breakfast Report: The Week Ahead, Stock Watch & Recommendations – Vetiva - Brand SpurBreakfast Report: The Week Ahead, Stock Watch & Recommendations – Vetiva - Brand Spur

Subscribe to BrandSpur Ng

Subscribe for latest updates. Signup to best of brands and business news, informed analysis and opinions among others that can propel you, your business or brand to greater heights.

- Advertisement -

LEAVE A REPLY

Please enter your comment!
Please enter your name here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Breakfast Report: The Week Ahead, Stock Watch & Recommendations – Vetiva - Brand SpurBreakfast Report: The Week Ahead, Stock Watch & Recommendations – Vetiva - Brand Spur

Latest News

World Press Trends Outlook: Digital Transformation In The Driver’s Seat

One of the many silver linings of the pandemic for publishers has been the ability of their organizations to...
- Advertisement -
BrandsPur Weekly Cartoons
- Advertisement -Breakfast Report: The Week Ahead, Stock Watch & Recommendations – Vetiva - Brand SpurBreakfast Report: The Week Ahead, Stock Watch & Recommendations – Vetiva - Brand Spur