Report

Economic Update - June 2018

  • Although the improving economic fundamentals, based on recent data, could be aligning to support Nigeria markets rebound, politics is casting a cloud over the recovery and stability picture and this is likely to pacify the upside potential for the markets. Despite our views on crude oil price stability, higher revenue, more resilience to FX shocks, waning inflation and improved macro image, the political backdrop has given the bulls reason to think twice and causing markets to stage a ‘risk off’ sentiment.
  • The start of the final round of 18 (H2 2018) greets the first test of power between the two major political parties, the Ekiti gubernatorial election, and will jump-start the permutations and gaming ahead of the 2019 election.
  • In this report, we look at developments in the macro space over the month of June and delineate our outlook over subsequent months.

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Provider
ARM Securities Limited
ARM Securities Limited

ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape. ​

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