Global Economy –Rundown:
The unemployment filling by Americans for the week ended 18th July rose by 1.416 million, as the aggregate unemployed claims were estimated at 31.8 million beneficiaries, as of 4th July. The increase in jobless benefit payout is related to increase cases of confirmed COVID-19 that has pressured authorities to either shut down business or suspend reopening, and with the continuous state of business disruption, the retail sector of the economy has been plagued with increased Bankruptcy filling as business struggles with discouraging demand. This raises more doubts about the pace of economic recovery potentials of the country, while in recent weeks the dollars have dipped against other relative currencies, while added risk element to the country is the deteriorating bilateral relationship between the US and China.
Domestic Economy –Rundown:
Investors sentiment towards the country within the first half of the year declined by 67%, from $15.5Bn, as at previous year, to $5.06Bn, the slide in investment inflows to the country is connected to the health pandemic that has distorted economic activities globally. The preferred sectorial allocation among investors revealed that Transport & Storage, Information & Communication, Mining & Quarrying, and, agricultural sectors were among the top investors interest, as they were allocated 40%, 32%, 22% and 5% of the amount invested in the country. According to investors demography, 16% were domestic investors, while 43%, 31%, and 8%, were by the United State, South Africa, and the United Kingdom, respectively.
The country’s currency during the week was mostly solid at the I&E, however, the last day of the week losing the gripe as the Naira decline by 0.39%, while on a week on week basis the Naira contracted by 0.26%.
The equities bourse for the week recorded a marginal gain of 0.58%, the trading session of the week witnessed 4days of decline. The sector performance of the NSE indices, we monitor was bearish for the week.