EUR 140.56 For Business Accounts Only

Breakfast Report - 31 October 2016

• • The Ministry of Petroleum Resources released the 2015-2019 “7 big wins” – priority areas and initiatives to grow Nigeria’s Oil & Gas Industry in the medium term. The purpose of the “7 big wins” is to create an enabling oil and gas landscape to achieve transparency, efficiency, stable investment, and environmental security. Starting from November 2015, some of the recorded successes so far include a successful Chinese Roadshow that generated $80 billion worth of MOUs for investment projects, the liberalization of the downstream sector, and the abolition of the subsidy regime which has accrued monthly savings of ₦15.4 billion to the Federal Government (FG). Building on these, the 7 key areas highlighted were Policy and regulation, Business Environment and Investment Drive, Gas Revolution, Refineries and Local Production Capacity, Niger Delta and Security, Transparency and Efficiency, Stakeholder Management and International coordination. Notably, passage of the Petroleum Industry Bill and complete liberalization of the downstream sector are two elements of the Policy and Regulation initiative. In addition, under the Niger Delta and Security initiative, the clean-up of polluted areas and development of a masterplan for the region are some of the key proposals.
• The Nigerian equity market closed the past week on a negative note. After opening the week marginally down, losses intensified on Tuesday as declines across cement stocks pulled the ASI to its largest daily loss in the month. Although the market trended higher through the rest of the week, the ASI still closed 1.1% lower w/w due to the heavy losses posted earlier in the week.
• We highlight that a handful of earnings across sectors were released after session close Friday. With most results missing the mark, we believe the market could open on a slightly bearish note but expect select names with better than expected earnings to continue to attract attention.