Wednes day, January 1 3 , 202 1 / 3:36 P M / By Comercio Partners Asset Mgt / Header Image Credit: Ken Research
Proshare Nigeria Pvt. Ltd.
Report Summary
The Macroeconomy Growth expectations for the Nigeria economy remains gloomy.
Headline inflation inched up further, on the back of an uptick in the food subindex.
The Naira depreciated at the l&E FX Window.
The Manufacturing PMI slipped back info the contractionary region.
The Financial Markets The equity market gained 50.05% in the fourth quarter of 2020.
The fixed income market reversed its bullish trend.
Our Expectation for the Coming Quarters GDP growth in 2021 is expected to be tepid.
We maintain a weak expectation on the trajectory of inflation as most drivers remain active. The equity market will remain shaped by the yield environment in the mid-term. New Strain Of Covid-19 Renews Concerns About The Pandemic COVID-19 cases remained high on both sides of the Atlantic, aggravated by a more contagious strain discovered in the UK that brought large swathes of the country back into full lockdown. In the US, cases, deaths, and hospitalization over the Christmas period surpassed record levels last seen in April. US states and cities put in place the most severe restrictions since spring.At the same time, the vaccine development has been encouraging. The UK became the first country in the western world to approve and distribute a vaccine early in December, the US followed a few weeks later and the EU started their roll-out by the end of December. Vaccination programs have given markets hope that economies could fully reopen in the coming spring.On the policy side, U.S. policy makers provided further fiscal support. The $900 billion fiscal stimulus package was signed into law by President Trump in late December. Also, the Federal Reserve announced that it will maintain asset purchases at current levels over the coming months until substantial progress has been seen on the employment front. The European Central Bank also scaled up its bond buying program.The last-minute BREXIT deal was good news for the UK and Europe, as major trade disruptions in early 2021 were averted. Earlier in the month, a 48-hour stand-off between the UK and France amid the new COVID-19 strain discovered in the UK led to a major freight and passenger disruption.Back in Nigeria, the major headlines surfaced in the last week of the year, […]
