Author: merchant-bank
-
Cautious optimism for 2020
If a surging stock market and falling risk-free rates are signs of optimism, then we can be optimistic about Nigerian markets this year. Indeed, the Central Bank of Nigeria (CBN) might congratulate itself on its bold policy experiments last year. We temper our enthusiasm by observing that T-bill rates are well below the rate of […]
-
T-bills yields crash, equities surge
If risk-free asset yields are driven low enough for long enough (and T-bill rates has been falling since October), then risk assets will gain in popularity. The equity market is booming, rather too quickly for our new Model Equity Portfolio to catch up (see page 3). On page 2 we examine the curious divergence of […]
-
Year Ahead 2020: Re-risking the financial system
Oil prices: In a global oil market threatened with over-supply, it appears that OPEC, and its ally Russia, are doing a good job of limiting production. Oil price volatility was reduced in 2019 and prices (Brent) held up above US$60.00/bbl most of the time. With further OPEC cuts announced last December, we think 2020 may […]
-
Year of Policy Experiments
2020 will see the results of three bold policy experiments started in 2019. First and second were the minimum loan-to-deposit ratio (LDR) of 65% imposed on banks and the ban on local institutions buying open market operation (OMO) bills, both policies aimed at banks growing their loan books. We explain the tensions caused in Coronation […]
-
Nigerian Oil Production
Last week the Organization of the Oil Exporting Countries decided to cut production quotas again, this time with Nigeria very much in mind. Nigeria’s level of oil production is not entirely in its own hands. FX The CBN’s foreign exchange reserves have shed US$381.40 million so far in December, bringing the gross figure to US$39.32 […]
-
Sweet crude, mild surprise, growth up 2.28% y/y
Q3 2019 GDP growth was reported on Monday at 2.28% y/y, exceeding the Bloomberg consensus estimate of 1.85% y/y. However, it marked an improvement on Q2 GDP which grew at 2.12% (restated from the original print of 1.94%). Significantly, Q3 non-oil GDP grew at 1.85% which marked an improvement in Q2 when it grew at […]
-
The state of insurance in Nigeria and the route to growth
At the end of last week the 2019 Nigerian Insurance Industry report ‘From the Lagoon to the Ocean’ was released by Coronation Research, a leading research house in Nigeria. The report takes a critical look at Insurance industry, outlining the current state of the industry and the opportunities that exist for growth. To find out […]
-
2019 Insurance Industry Report: From the Lagoon to the Ocean
The industry that got left behind Following the introduction of new capital requirements by the National Insurance Commission (NAICOM), we anticipate a reduction in the current number of insurance companies from 59 to 25. Nigeria’s insurance industry has not shared in the growth experienced by other Nigerian financial services, notably banks, pension funds and mutual […]
-
The Emergence of Derivatives Market in Sub-Saharan Africa (SSA)
Watch leading experts from JP Morgan West Africa, Central Securities Clearing Systems Plc., Citibank Nigeria, Coronation Merchant Bank and others as they discuss issues on the derivatives market in Sub-Saharan Africa
-
Go into the week with thoughtful insights
Don’t be caught napping as you head into the week. Stay up to date with the latest on macroeconomic and topical issues in Nigeria. Coronation Weekly highlights market performance in the prior week, and what to expect in the week ahead. Download PDF
