FCSL WEEKLY MARKET REPORT _4th SEPTEMBER, 2020

Global Economy –Rundown:
The United State’s citizens filing for unemployment benefits claims receded below the million mark, based on prior week labour data, and this is the second time since COVID 19 outbreak, this slide was fueled by a seasonal adjustment which resulted in the 881,000 unemployment benefit claims for the week ended 29^th August, and the aggregate citizen claiming unemployment benefit is estimated at 29.2 million persons as of mid-August. However, the month employment data reveal that nonfarm payrolls grew by 1.37million, as the unemployment rate declined by 8.4%, the employment improvement was boosted by government hiring that is estimated at 344,000 additional workforce for the period. The failure of the government to sustain its $600 weekly unemployment supplement will hamper the Nations long term economic growth and social stability, while the surge in import, as propelled an 18.92% growth in trade deficit to $63.6 billion as of July.
Domestic Economy –Rundown:
Nigerian’s trade deficits for the second quarter, inched higher to N1.803Trillion from N0.421Trillion, as aggregate trade for the quarter was N6.242Trillion, with the composition of imported trade and exported trade valued at N4.023Trillion and N2.220Trillion respectively. The year to date aggregate trade value is estimated at N14.829Trillion. The imported merchandise for the quarter was propelled by machinery and transport equipment, Chemicals and related products, and Food and Live Animals that all accounted for 39.7%, 19.0%, and, 16.1% of the value of the gross import. While the merchandise export of the country was majorly mineral products and Vehicles aircraft and parts that both constitute 84.35% and 9.96% of the exported value.
Currency:
The Naira closed the week with a marginal depreciation, as the exchange rate at the I&E FX window settled at N386.13/USD, while at the parallel market, Naira was firmed up at N440/USD.
Equities
The equities market bullish run persisted all through the week, as the week-on-week performance indicated a 1.17% appreciation, while the YTD ASI growth was a negative growth of 4.61%. The sector performance of the NSE indices was bullish for the week, as the average change of the NSE Indices was 2.06%, based on the indices monitored.
Fixed Income:
The system liquidity at the end of the week was N804.3BN, and the open buy back rate, and overnight rates for the week ebbed to 1.63% and 2.25% respectively.
T-Bills secondary market activities were bullish as average yield dipped by 12bps to 1.41% for the week, most yields declined at the medium end of the yield curve.
The Bond secondary market, activities were mainly bearish, as the average yield for the week inched up by 6bps to 8.52%, as most yield appreciation was recorded on the short-long tenured bond that increased by 14bps and 35bps respectively.
 
 

 
Read More: