Extension or Relaxation of the Lockdown
Following the joint recommendation of Governors’ Forum and Economic Sustainability Committee, we expect the FG to gradually ease lockdown considering the fact that the economy is currently choking. The possibilities of an increase in social unrest and criminal activities is also a concern.
Welcome Back CBN
If the lockdown is relaxed in 24 hours, we expect CBN to lose its ‘hide-and-seek’ game with Foreign Portfolio Investors (FPIs) and finally show face in the office on 28th April 2020. The implication of that is more dollars to the I & E window.
More dollars will not necessarily guarantee the stability of naira but it’s an indication that FPIs may finally have the opportunity to exit the fixed income and equities market.
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Equities Market
Over a 13-day trading period, commencing 6th April 2020 the Market has gained over 9%, the last time that happened was in January 2020. The reason for this rare feat during ‘a pandemic’ is because foreign investors are currently trapped in the system with almost no option than to trade.
The return of the CBN with dollars may provide the exit they have been yearning for since March. Depending on how local investors can fill the space of FPIs, we may experience a free fall in ASI.
If your disposition towards risk is averse, if you are not a risk-taker, if you don’t like risk, now may be the time to watch the equities market closely or exit and head to the money market where you can enjoy some stability and capital preservation. If you are a risk seeker, taker or lover, you may want to continue your bargain hunts or exit now and come back in May.
Click on the link https://bit.ly/2XrvIf9 to open a stockbroking/share purchase account and trade within 24 hours.
Money Market Update:
At the current rate of inflation, you need returns that will take you closer to growing your wealth in real terms, we can provide that. Our money market fund is still open and yield is currently over 11.5%, reach out to our team to grow your cash. We are digital, we are working from home, we are online and we are active.
Click to subscribe to our money market fund https://trustbancasset.com/moneymarket/
Asian shares bounced on Monday as the Bank of Japan (BOJ) announced more stimulus steps to help cushion the economic impact of the coronavirus, but the recent weak run in the global oil price showed no signs of ending. MSCI’s broadest index of Asia-Pacific shares outside Japan rose 1.8%, taking back a chunk of last week’s 2.6% decline. Japan’s Nikkei gained 2.6%, and Chinese blue chips 1%. After a soft start, E-Mini futures for the S&P 500 climbed 0.85%, while EUROSTOXX 50 futures added 2.6% and FTSE futures 1.35% Read more.