is weak growth, with Q1 2019 GDP economic expansion at just 2.01% y/y . What better time for the Central Bank of Nigeria to publish its five-year plan? See page 2.In June Foreign Portfolio Investment was US$647m, down 58.8% from the previous month. Notwithstanding this, FPI inflows accounted for 68.5% of total inflows into the main FX market, the NAFEX market, for the month and the CBN’s FX reserves are currently reported at US$45.07bn, which is close to recent highs.
According to Reuters, the Organisation of the Petroleum Exporting Countries and its allies are set to extend oil production cuts till the end of 2019 as top producers Saudi Arabia, Russia and Iraq were joined by Iran in endorsing a policy directed at increasing the price of crude amidst a slowdown in the rate of growth of the global economy.The Nigerian Stock Exchange All-Share Index gained 0.39% last week, resulting in a year-to-date return of negative 4.66%.
The rally in the NSE All-Share Index was helped by the support of several consumer names, notably Unilever Nigeria and Nestle Nigeria . Generally, we are downbeat on the sector).Nigeria’s economy is prone to external shocks, partly a consequence of its overwhelming dependence on crude oil in generating foreign exchange revenues. The CBN attempts to shorten the duration of these shocks or reduce their impact.