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Local Market Economic Updates

Proposed Interim Dividend

Flour Mills of Nigeria Plc declared N2.25 interim dividend. Qualification date October 13, and payment date November 10, 2023. Stanbic IBTC Holdings Plc proposed N1.50 interim dividend, qualification dates, September 12, 2023. Fidelity Bank Plc proposed N0.25 interim dividend, qualification date is September 15, 2023.

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NGX emerges as second best-performing market in Africa

The Nigerian Exchange Limited (NGX) has emerged as one of the best-performing exchanges in Africa during a 3-month duration. In a statement made available by the NGX, according to African markets, a website tracking the performance of exchanges in Africa, the Ghana Stock Exchange (+22.84%) emerged first while NGX (+19.33%) emerged second on the list, followed by Malawi stock exchange (+15.79%).

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Manufacturing Contribution to Economy Drops to 2.2% – NBS

The real sector’s contribution to the Nigerian economy dipped to 2.20% (year-on-year) in the second quarter of 2023, according to the Gross Domestic Product report of the National Bureau of Statistics. According to the report, the growth rate of the sector on a quarter-on-quarter basis stood at -14.98 per cent.

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Global and Emerging Market Economic Updates

U.S. Commerce Secretary says she ‘didn’t pull any punches’ during recent visit to China

U.S. Commerce Secretary Gina Raimondo met with Chinese officials in a high-stakes visit to Beijing and Shanghai this week, and she said Sunday that the trip helped establish open lines of communication between the two nations.

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Gabon reopens borders ‘effective immediately’: army

Gabon’s army said on Saturday that it would reopen the country’s borders, closed in the wake of the military coup that ousted ex-president Ali Bongo. A spokesman for Gabon’s military rulers said on state TV that they had “decided with.

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Russia again targets Danube ports as Putin prepares to discuss grain deal with Erdogan

Russian forces launched a “massive” drone attack on Ukraine’s Danube River area for the second straight night, Ukrainian officials said Monday, just hours before Russia’s president

On Monday

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Gabon Bonds Jump on Reduced Debt Burden, EU Stance on Coup

Gabon’s dollar bonds rebounded from a two-day slump as the country’s lowered debt-servicing burden and the European Union’s comments on this

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Nigerian Equities Market

Nigerian Equities Market Surge Up Amid Macroeconomic Uncertainties, NGX ASI Gained 3% WoW

The Nigerian Equities Market closed the month of August bullish regardless of prevailing global economic uncertainties.

The NGX All-share Index & Market Capitalization appreciated by 3.00% each to close the week at 67,527.19 points and N37.05 trillion compared with 64,721.09 points and N35.42 trillion traded in the previous week. Year-to-Date return stood at 31.76% from 26.28% WoW. Market breadth (a measure of investor sentiment) strengthened marginally to, closed at 1.96x from 0.52x in the previous week.

Fifty-five (55) equities appreciated in price during the week higher than thirty-two (32) equities in the previous week. Twenty-eight (28) equities depreciated in price lower than forty-six (46) in the previous week, while seventy-two (72) equities remained unchanged, lower than seventy-seven (77) recorded in the previous week.

The activity level was strengthened significantly as the total traded shares volume and value closed at 58.17% and 26.45% respectively.

A total turnover of 2.866 billion shares worth N37.050 billion in 33,968 deals was traded this week by investors on the floor of the Exchange, in contrast to a total of 1.812 billion shares valued at N29.299 billion that exchanged hands last week in 31,163 deals.

Trading in the top three equities namely Transnational Corporation Plc, Sterling Financial Holdings Company Plc and Fidelity Bank Plc (measured by volume) accounted for 1.065 billion shares worth N6.525 billion in 6,801 deals, contributing 37.17% and 17.61% to the total equity turnover volume and value respectively.

Outlook for the week

We expect bullish sentiment in the Equities Market as investors’ confidence seems to outweigh uncertainties in the macroenvironment, amid cooperate positive performance in the H1’2023.

Nigerian Fixed Income Market

The yield on FGN bonds closed mixed last week. While the yield on 1-year, 5 year, and 10 year bonds compressed by -1.04%, -0.14%, and -0.34%, to close at 7.75%, 13.75%, and 14.35% respectively; the yield on the 3 year and 30 year bonds closed advanced by 0.72% and 0.25% to close at 11.36 and 15.35% respectively.

In the Nigerian Treasury Bills Market, the yields for TB maturing in 182 days and 364 days compressed by -2.47% and 1.04% to closed at 4.75% and 7.74% respectively.

In the Money Market space, the Open Repo (OPR) close at 1.67% from 21.42%, while Overnight rates close at 2.42% from 21.40% Wow.

Outlook for the week

As interest rates continue to hike on the back of accelerating inflation, we expect the short end of the yield curve to advance faster than that of the long end. In other words, a financial uncertainty shock causes a temporary steepening of the yield curve. That is, investors tend to ask for a higher yield in the short-run for short-term instruments in periods of rising interest rates.

The Global and African Market

The global market closed bullish last week as all the indices under our coverage closed in the green. Analyst think the positive performance was partly accredited to an improved investors’ confidence, amid positive H1’2023 corporate performance.

There was positive performance in African Stocks last week, except for the KENYA NSE, which sloped -1.25%. The JALSH, EGX 30 and the NGX ASI appreciated by 1.29%, 3.66%, and 3.00% respectively.

Outlook for the week

We expect buy-sentiment to persist in the global market, but on a slower pace, as investors envisage possible rates hike as the Fed and other Central Banks sit this month to further contend inflation.

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