Macroeconomic Report & Economic Updates

Nigeria Economic Update (Issue 40)

Market indices at the Nigeria Stock Exchange closed downward in the trading week ended October 4, 2019. The bourse recorded a  meagre 2.48 percent decrease in twin market indices– All Share Index and Market Capitalization. Both indices closed at 26,987.45 and N13.137 trillion respectively.1 All of other market indices depreciated with the exception of NSE Insurance and NSE Industrial Goods Indices. The worst hit was Consumer Goods Index NSE Banking Index which declined by 4.92 percent and 3.94 percent respectively, while the NSE Insurance Index increased by the most percentage of 5.71percent. The depreciation can be linked to profit taking on gains made the previous week.2 We expect market sentiment to turn around as discerning investors start buying stocks that are now trading at lower levels. We also expect that the swift approval of the 2020 budget will have a positive impact on investor’s sentiment, consumer spending and companies’ earnings; and thus on the future market value of the outstanding shares, especially in the consumer goods market.

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