Senior Research Analyst at FXTM
Nigeria’s
All Share Index is on route to concluding the trading week on a steady note
despite coronavirus cases topping 34,000 in Africa’s largest economy.
Extra-smart
#Nigerians are getting shares of the new #Lagos by acquiring #plots, acres and
hectares of land at #Ibeju #Lekki . What are you waiting for? Click: http://www.tectono-business.com/2019/07/have-share-of-new-lagos-by-investing-in.html
Economic
fundamentals from Nigeria have been nothing to celebrate about thanks to deep
wounds inflicted from lockdown restrictions and depressed Oil prices. To add
fuel into the fire, China’s latest growth and retail sales figures have
triggered fears around a shaky economic recovery – something that is bad news
for emerging markets and economies with close trade ties. However, local shares
may find support from vaccine hopes and expectations of further stimulus for
pandemic-hit economies.
OPEC
and Co. have decided to taper production cuts from 9.7 million barrels per day
to 7.7 million barrels starting from August 2020. While Oil demand has jumped
in recent weeks due to easing lockdowns, reducing production cuts may be
premature given the state of the global economy and rising coronavirus cases in
the United States and parts of Asia. OPEC expects the increase in supply to be
countered by countries like Nigeria that failed to meet full compliance on
production cuts.
Have
you heard that #Landwey is giving out plots of land at #URBAN #PRIME TWO #ESTATE
at #Abraham #Adesanya #Roundabout, #Ajah, #Lagos? You can get yours by clicking:
http://www.tectono-business.com/2020/02/urban-prime-two-estate.html
With
Nigeria joining Iraq and Angola by cutting production by a further 842,000
barrels a day through September, the next few months could be rough and rocky.
An unfavourable scenario where Oil prices fail to push higher could mean less
export earnings and government revenues for Nigeria, which has only been able
to meet 56% of its targeted revenue from January to May.
To add
insult to injury, inflation accelerated for the 10th straight month in June as
restrictions on foreign exchange and border closures inflated prices. Consumer
prices hit 12.6% last month, its highest level in two years and may push higher
thanks to a weaker Naira, low Oil and Dollar shortages. Given how inflation has
found comfort above the Central Bank of Nigeria’s target band of 6%-9% for over
five years, there is little room for the CBN to ease monetary policy.
Wow!!!
Have you discovered where #CEOs and top #managers take their #vehicles to for
body work, painting with #Sikkens #paint and #oven #baking? It’s GOF AUTOS LTD.
For details, click: http://www.tectono-business.com/2017/06/gof-autos-limited-best-automobile.html
On the
bright side, Nigeria has for the first time refined its own Gold and purchased
the finished product into a new Gold reserve. This move could signify the start
of using precious metals to boost it foreign exchange reserves. Given how the
metal is trading at levels not seen in 9 years above $1800, this welcome
development should boost sentiment towards the economy. Fundamentally, Gold
continues to draw support from lower interest rates, global growth concerns,
geopolitical tensions and US-China trade tensions among many other negative
themes. Prices have the potential to test $1820 and beyond if a weekly close
above $1800 is achieved.
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