The Market Today - 5 May, 2017
​Global oil prices set to close the week at 2017-low
Brent crude, the global benchmark grade, looks set to close the week below $50/bbl for the first time in 2017 as rising U.S. oil production depresses the impact of the OPEC output cut. U.S. oil production has risen to a 20-month high of 9.3 million barrels a day as U.S. shale producers drill more. The decline in oil prices puts a greater spotlight on the OPEC meeting on May 25 when the cartel, along with Russia and several other countries, will decide whether they will extend the oil output freeze agreement which expires at the end of this month. Preliminary reports from OPEC member states’ oil ministers – including Nigeria’s Ibe Kachikwu – suggest that most are in favour of extending the agreement, though this may hinge on the responsiveness of non-OPEC partner countries like Russia. With global crude stockpiles still high despite the OPEC output freeze and an existing supply glut, oil prices are likely to trend further southwards, absent an extension of the OPEC agreement.
Momentum slows on NSE, ASI up 18bps
After trading lower for most part of the trading session, the Nigerian bourse recorded another positive close yesterday, with the NSE ASI posting softer gains (up 18bps) amidst profit taking across select stocks. We do not rule out the possibility of a negative close at week close amidst continued profit taking.
Stock Watch: Following a 10% loss yesterday, STANBIC halted a thirteen-session gaining streak and retraced from over a year-high as investors begun to rake in profit from recent gains. The stock currently trades at ₦24.81 with ytd gains cut to 65%.
Bears claim foothold in fixed income market
With stop rates at the PMA higher than secondary market levels, the bills market turned bearish yesterday. Similarly, trading in the bond space was largely bearish with yields advancing across the curve. We foresee continued selloffs in the fixed income market as bills yields continue to adjust to PMA levels even as the bond market continues its recent bearish streak.
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.