FCSL WEEKLY REPORT _30TH OCTOBER, 2020

Global Economy –Rundown:
The recent European region statistics have revealed that the region economy GDP recorded a 12.7% growth for Q3, and a 12.1% GDP growth was recorded within the European Union States, on a quarter on quarter basis, while their respective year on year GDP remains within the contraction bandwidth. The growth was propelled by both fiscal and monetary policies deployed to stimulate the economy, also the easing of restriction within the region, as most states were able to turn the curve against the pandemic, which was an added momentum to the pace of economic activity within the quarter. However, the economic trajectory for the last quarter of the year is anticipated for a pullback given the second wave of the virus outbreak that has forced states to implement another round of economic lockdown.
Domestic Economy –Rundown:
The Manufacturing PMI for the month inched closer to an expansionary bandwidth as the PMI was at 49.4 index points after five consecutive months of steady contraction readings, while subsectors reviewed under the manufacturing PMI, had six sectors that recorded an expansion reading for the month, as the remaining 8 sectors still maintained the contractionary readings. According to the manufacturing sector activities, the Production level, New Orders and Suppliers delivery time, all reported an expansion for the month, while the lagging activities for the month were Employment level and Raw material inventories. However, the Non-manufacturing PMI still maintained its contractionary readings for the month as the index point for the month was 46.8 points, as all its activities level remained within this region as well.
Currency:
The Naira closed flat, as the exchange rate at the I&E FX window settled at N386.00/USD, while at the parallel market, Naira firmed up in value to N462/USD.
Equities
The equities market week-on-week performance indicated a 6.39% growth, and the YTD ASI grew to 13.74%. The sector performance of the NSE indices maintained a positive rally for the week, as the average change of the NSE Indices was 7.94%, based on the indices monitored, which was sustained by significant growth recorded from NSE Consumer Goods index.
Fixed Income:
The system liquidity at the end of the week firmed up, as both open buyback rate and overnight rates dipped to 1.0% and 1.30% respectively.
T-Bills secondary market activities was bearish as the average yield inched up by 48bps to 0.48% for the week, as market yields rebound across the medium term. The primary market auction witnessed an aggregate sales of N152.90Bn at the marginal rate of 0.34%-91days, 0.54%-182days, and 0.98%-364days.
The Bond secondary market, activities maintained its bullish sentiment, as the average yield for the week dipped by 17bps to 4.83%, as yield declines were recorded across market maturity bandwidth.
 
 

 
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