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Breakfast Report - 04 October 2021

• As we wind down Independence Day celebrations, Nigerians anticipate the launch of the e-Naira. The e-Naira’s numerous benefits include improved access to capital with minimal/no transaction costs, enhanced remittance flows, digitization of welfare schemes, and increased surveillance to curb fraudulent practices. While the e-Naira would be non-interest bearing, the digital currency could enhance financial inclusion as financial products are assessed via mobile phones. In our opinion, we believe the digital initiative could be instrumental to a suitable retail foreign exchange framework, as oil prices rise, and external reserve prospects remain bright.
• Equity: Market activity during the quarter was lifted by block transactions significantly in FBNH and HONYFLOUR, while the broader market traded quietly. In the new month, we expect market to continue to trade in similar pattern amid local investors dominating the scene.

 

• Stock Watch: In Friday’s session, DANGCEM was a top gainer, advancing 7.28% to close at ₦280.00. The stock has currently returned 14.33% YTD.

 

• Fixed Income: Supported by coupon inflows, system liquidity remained healthy in the past week. Thus, in the coming week, we anticipate active trading across the NTB and OMO markets. Meanwhile, we expect activity across the bonds space to remain mixed, as investors look to the monthly bond auction and await the bond issuance calendar for the final quarter of 2021.