Economy
July Inflation to Drop to 11.01% from 11.23%—FSDH
By Dipo Olowookere
One of the leading investment research firms in Nigeria, FSDH, has predicted a marginal drop in the inflation rate for the month of July 2018.
The National Bureau of Statistics (NBS) is due to release the inflation rate for the month of July on Wednesday, August 15, 2018.
In the month of June 2018, the inflation rate moderated to 11.23 percent year-on-year and analysts at FSDH are saying this would further drop to 11.01 percent.
Economic expert at the company explained that the expected decrease in the inflation rate would be largely due to the base effect of the previous year with a slower increase observed in the price of some food items in July than in June.
The Food Price Index (FPI) published by the Food and Agriculture Organization (FAO) for the month of July 2018 indicated that the index averaged 168 points in July 2018, 3.73 percent lower than the June value, and the first significant month-on-month decline since December 2017.
According to the FAO, all the sub-indices reflected a notable drop in values. The FAO Dairy Index fell by 6.59 percent from June 2018 as the prices of butter, cheese, skim milk powder and whole milk powder eased in July.
The FAO Sugar Price Index was down by 6.01 percent on the heels of reports on improved supply conditions in the main sugar producing region of India and Thailand.
The FAO Cereal Price Index was down by 3.58 percent, largely driven by weaker export quotations for maize, rice and wheat. The FAO Vegetable Oil Price Index was down by 2.88 percent, marking a two and half year low and the sixth consecutive month fall in the index.
This was as a result of abundant inventory levels coupled with a favourable outlook for global supply and weak export demand of soy and palm oil.
The FAO Meat Price Index was also down by 1.88 percent as prices of bovine, pig and poultry meat declined due to reduced demand.
According to FSDH, its analysis indicated that the value of the Naira depreciated marginally at the Nigerian Autonomous Foreign Exchange (NAFEX), while it appreciated at the parallel market to end July 2018.
The value of the Naira depreciated by 0.03 percent to close at $/N361.20 at the NAFEX market while it appreciated by 0.84 percent at the parallel market to close at $/N359 to end July.
The general decline in the international prices of food coupled with the appreciation in the value of the Naira at the parallel market muted the prices of imported consumer goods in Nigeria between the two months under review.
The prices of most of the food items the firm monitored in July 2018 moderated compared with June, while a few items recorded price appreciation.
“The movement in the prices of food items during the month led to a 1.18 percent increase in our Food and Non-Alcoholic Index. This Index increased year-on-year by 12.57 percent, up from 248.82 points recorded in July 2017.
“We also observed an increase in the prices of Transport and Housing, Water, Electricity, Gas & Other Fuels divisions between June and July 2018.
“We estimate that the increase in the Composite Consumer Price Index (CCPI) in July would produce an inflation rate of 11.01 percent, lower than the 11.23 percent recorded in June,” the Inflation Watch report released on Friday said.
By Dipo Olowookere
The Nigerian equity market showed no signs of slowing down, as it further appreciated by 1.30 per cent on Friday on the back of sustained buying pressure.
Unlike the preceding sessions, investor sentiment was bullish yesterday after the Nigerian Exchange (NGX) Limited ended with 43 price gainers and 26 price losers, implying a positive market breadth index, the first this week.
UPDC gained 10.00 per cent to close at N4.40, Academy Press also appreciated by 10.00 per cent to quote at N7.70, Haldane McCall improved by 9.97 per cent to N3.97, Zichis soared by 9.94 per cent to N15.60, and Wema Bank added 9.84 per cent to settle at N31.25.
Conversely, Meyer lost 9.92 per cent to sell for N16.80, Trans-Nationwide Express also crashed by 9.92 per cent to end at N7.90, C&I Leasing slipped by 8.53 per cent to N5.90, Omatek dipped by 7.34 per cent to N2.02, and eTranzact decreased by 5.28 per cent to N17.05.
When the bourse closed its doors to business, the All-Share Index (ASI) rose by 2,884.81 points to 225,722.49 points from 222,837.68 points, and the market capitalisation grew by N1.858 trillion to N145.335 trillion from N143.477 trillion.
A look at the activity chart showed that market participants transacted 627.6 million shares worth N44.5 billion in 55,232 deals during the trading day compared with the 667.9 million shares valued at N38.1 billion traded in 53,062 deals a day earlier.
This indicated that the volume of transactions went down by 6.03 per cent, the value of trades went up by 16.80 per cent, and the number of deals jumped by 4.09 per cent.
Access Holdings closed the session as investors’ toast, with a turnover of 75.6 million units worth N2.4 billion. UBA transacted 43.1 million units valued at N2.3 billion, Wema Bank exchanged 41.5 million units for N1.3 billion, Zenith Bank traded 38.4 million units valued at N5.2 billion, and Universal Insurance sold 29.5 million units for N35.9 million.
By Aduragbemi Omiyale
Mr Taiwo Oyedele has set some goals he intends to achieve as Nigeria’s Minister of Finance and Coordinating Minister of the Economy.
While taking over from his predecessor, Mr Wale Edun, on Thursday, the tax expert assured that he has no plans to overturn some of the reforms already put in place by the former occupier of the seat.
In a message on Friday, he emphasised that, “Our immediate task is to consolidate these gains, deepen ongoing reforms, and ensure they translate into tangible benefits for all Nigerians.”
He promised to ensure fiscal discipline by embracing transparent and prudent management of public resources, while also harmonising revenue administration, broadening the tax base, reducing the burden on the vulnerable population, and supporting economic growth.
Mr Oyedele further said his other strategic priorities include creating a predictable and investor-friendly environment anchored on policy coherence, consistency, and clarity; and aligning efforts across all tiers and institutions to maximise policy impact.
He also said efforts would be made to deepen collaboration with the private sector and other key stakeholders for data-driven policy design, co-implementation, and feedback for continuous improvement.
According to him, “Good policy design alone is not enough; success will be defined by execution. We are committed to disciplined implementation, accountability, and measurable results.”
“I look forward to working with colleagues across government, the private sector, and all Nigerians as we move from reform to result, accelerate growth and build a more stable, inclusive, and prosperous economy,” he stated.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange further appreciated by 0.23 per cent on Thursday, April 23, with the Unlisted Security Index (NSI) adding 8.99 points to close at 3,969.96 points against the previous day’s 3,968 points.
The rise in the share price of Central Securities Clearing System (CSCS) Plc by N2.86 to N69.34 per unit from N66.48 per unit raised the market capitalisation of the NASD bourse by N5.38 billion to N2.380 trillion from N2.375 trillion.
Yesterday, there were two price losers, led by Food Concepts Plc, which lost 29 Kobo to sell at N2.65 per share versus N2.94 per share, while UBN Property Plc dipped by 22 Kobo to N2.03 per unit from N2.25 per unit.
During the session, the volume of securities traded declined by 97.9 per cent to 451,522 units from 21.5 million units on Wednesday, the value of securities depreciated by 52.32 per cent to N23.6 million from N49.5 million, and the number of deals depreciated by 3.6 per cent to 27 deals from 28 deals.
At the close of business, Great Nigeria Insurance (GNI) Plc remained the most active stock by value on a year-to-date basis with 3.4 billion units valued at N8.4 billion, followed by CSCS Plc with 59.5 million units exchanged for N4.0 billion, and Okitipupa Plc with 27.8 million units traded for N1.9 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis with 3.4 billion units worth N8.4 billion, trailed by Resourcery Plc with 1.1 billion units transacted for N415.7 million, and Infrastructure Guarantee Credit Plc with 400 million units sold for N1.2 billion.
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