Global Macro Highlights

UK economy showed no growth QoQ in Q3:2023

The Office for National Statistics reported that the UK economy showed no growth QoQ in Q3:2023 as GDP remained unchanged during the period, following a 0.2% increase in Q2:2023.  However, on a YoY basis, GDP advanced by 0.6%. We note that the persistence of an elevated interest rate which has impacted business activities poses a significant risk factor to the growth trajectory of the UK economy.

NBS in China revealed that the country’s CPI declined by 0.1% MoM and 0.2% YoY

The National Bureau of Statistics (NBS) in China revealed that the country’s Consumer Price Index (CPI) declined by 0.1% MoM and 0.2% YoY. This decline in CPI was primarily driven by a substantial reduction in pork prices attributed to an oversupply of pigs which tapered pork prices. Also, the country’s trade data for October 2023 showed an unexpected import growth while export contracted which is putting further strain on the country’s weakening economy.

AFDB has approved a budget support program amounting to USD102.6mn to aid the Ghanaian economy

The African Development Bank (AfDB) has approved a budget support program amounting to USD102.6mn to aid the Ghanaian economy. The allocated funds is directed towards fostering fiscal consolidation and facilitating the country’s economic recovery, particularly considering its current debt crisis and recent restructuring measures. We expect this program, which complements the ongoing extend credit facility with the IMF to  further stabilize Ghana’s economy and outlook in the near term.

Japan’s wholesale inflation fell below 1.0%

Japan’s wholesale inflation fell below 1.0% in October 2023 for the first time since February 2021. The data revealed that the slowdown is attributed to decreases in the prices of wood, chemical, and steel products, thus underscoring the declining global commodity prices. We expect the Bank of Japan (BOJ) to maintain rates at very low levels to boost domestic demand and drive economic activity.

Global Equities Market

Weekly Performance of Major Global Indices

Domestic Updates

Nigeria crude oil production for October 2023 declined marginally to 1.56mbpd

According to data from the Nigerian Upstream Petroleum Regulatory Commission (NUPRC), Nigeria crude oil production for October 2023 declined marginally to 1.56mbpd (from 1.57mbpd in September). We note that the Federal government has announced its commitment to address the challenges affecting the country’s oil production such as disruption in the supply chain, aging oil fields, decreased investment in the upstream sector and oil theft.

The FGN have formally entered a MOU with Saudi Arabia

The Federal Government of Nigeria have formally entered a Memorandum of Understanding (MoU) with Saudi Arabia. This agreement centres around facilitating technological exchange, promoting heightened investment, and cultivating a strategic partnership to catalyse growth in Nigeria’s energy sector. We expect this to stimulate investment inflow into Nigeria’s oil and gas industry and foster a mutually beneficial relationship between the two countries.

PZ Cussons (Holdings) has disclosed a fresh offer price of NGN23.0 per share

PZ Cussons (Holdings) has disclosed a fresh offer price of NGN23.0 per share for the outstanding 26.7% of PZ Cussons Nigeria Plc (PZ) shares. Although this new offer signifies a 9.5% increase from the previous offer of NGN21.0, it doesn’t provide any premium over the closing price of NGN23.0 on Friday, the 10th of November. The adjusted offer is indicative of the group’s  strategy to enhance PZ’s operational efficiency and financial health.

At PMA for T-Bills held last week, the Bid-to-Cover ratio declined to 2.8x

At the Primary Market Auction (PMA) for T-Bills held last week, the Bid-to-Cover ratio declined to 2.8x (vs.5.9x at the previous auction) Consequently, the stop rates across the trio instruments rose  by 110bps, 200bps and 380bps to 7.0%, 11.0% and 16.8% (vs 5.9%, 9.0% and 13.0% at the previous auction) respectively.

Equities Market – Sectorial Performance

Summary of Equities Transactions

Stock Picks for the week

Utica Fixed Deposit Investment