FREE

Breakfast Report - 05 September 2022

In Q2'22, capital imports increased 75.34% y/y to US$1,535.35 million, according to the National Bureau of Statistics. Despite recording the best second-quarter performance since the pandemic in Q2’22, capital importation has yet to reach pre-pandemic levels. Portfolio investments accounted for 49.33% of total inflows, other investments at 41.09% and foreign direct investments at 9.58%. On a sector basis, banks (the top sector) attracted 42.10% of the lump sum. In summary, Nigeria is still struggling to raise capital externally, due to the multiplicity of exchange rates, pre-election uncertainties, and difficulties in repatriating capital.

Equity: With the last 3 sessions of positive activity in the market, all the sectoral indices closed last week in the green. We anticipate a slow start this week, with possibilities of profit taking in some of last week’s gainers

Fixed Income: As we foresee no catalyst to sway market direction this week, we anticipate a continuation of similar, sell-side trading in the bonds market. Furthermore, the NTB segment is expected to trade in line with system liquidity.