WEEK AHEAD

Weeckoamhmeaodd i(tmy onday, 8th April – Friday, 12th April, 2019)

Oil: Brent may likely between $56 and $60 per barrel for a while, following China’s threat to retaliate if the new tariffs go into effect could push prices downwards.

Cocoa: Cocoa prices slipped by 0.67% to $2, 361/metric tonnes driven by increased cocoa supplies from Ivory Coast and Ghana. Going forward, heavier rainfall in Ivory Coast is projected to increase cocoa supply and depress prices further.

Fixed Income

The Central Bank of Nigeria will conduct a primary market auction on Wednesday, August 14. At the last auction, the apex bank allotted N28bn, N33.7bn and N161.5bn to 91, 182 and 364-dated notes respectively, with stop rates being 9.75%, 10.6% and 11.2%.

A 2-year Federal Government bond worth N220 million issued on August 16, 2017, at 13.535% coupon will mature Friday, August 16.

Commercial paper with description “FMNP II 13-Aug-19” issued by Flour Mill of Nigeria Plc at 14.75% issue yield will mature Tuesday, August 13.

Currency

The naira is expected hover around N363 against the dollar on the Investors & Exporters window following the escalation of trade war between United States and China.

Data Release

The Nigerian Bureau of Statistics will on Friday, August 16, release data on Consumer Price Index and Inflation Report for July, 2019. A dive into the report of the preceding month showed that headline inflation slowed to its lowest level in 11 months at 11.22%, albeit still above the CBN’S 6-9% target.