The Market Today - 28 July 2017
FG proposes ₦7.939 trillion expenditure for 2018
According to the 2018-2020 Medium Term
Expenditure Framework (MTEF), the Federal Government (FG) plans to spend ₦7.939
trillion in 2018. The fiscal plan also revealed projected revenue of ₦5.162
trillion, bringing expected deficit to ₦2.777 trillion. The MTEF also includes
an oil price benchmark of $45.00/bbl (2017: $44.50/bbl) and production
benchmark of 2.3 mbpd (2017: 2.2 mbpd). On another note, the Senate approved a
$1.8 billion borrowing plan for the Lagos – Kano railway modernization project
and the reconstruction and rehabilitation of the North East. The railway
project is to be funded by China Export-Import Bank to the sum of $1.231
billion, while the North-East rehabilitation is to be funded by the World Bank
in the sum of $575 million. Also, the house approved $750 million loan for six
states out of the $1.49 billion for ten states.
NSE continues to soar, ASI up 137bps
Amidst a flurry of corporate releases,
activity heightened on the Nigerian stock exchange yesterday (market value at
highest in thirty-seven sessions) with the ASI garnering 137bps on continued
bids for Consumer and Banking blue chips.
Stock Watch: FBNH
released its H1’17 results yesterday with PAT down 18% y/y to ₦29.5 billion but
10% above Vetiva estimate. Advancing 153bps yesterday, the stock has returned
78% ytd – closing at ₦5.97.
Sentiment cools in T-bills market amidst further mop-ups
Amidst maturities of ₦85 billion yesterday,
the CBN conducted another OMO auction offering ₦110 billion and selling a total
of ₦128 billion across the 189DTM and 364DTM bills at respective stop rates of
17.945% and 18.550% (effective yields: 19.78% and 22.46%). The T-bills market
turned mixed amidst the sizeable and consistent liquidity mop-ups over the
course of the week. Trading was also mixed in the bond space. We expect
continued mixed trading in the fixed income markets tomorrow as liquidity
remains strained, amidst the CBN’s continuous mop-ups.
Vetiva provides clients with independent and unbiased access to analysis and opinion. We keep our clients on the cutting edge of market information and provide up to date market intelligence on quoted companies. Our services allow brokers, investment firms, and asset managers focus their energies on developing investment strategies and client relationships.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.