19th May 2023 Africa Markets Roundup


  % ChangeYTD (%)  
NGX ASI 52,187.930.15%1.83%
Brent Crude Oil   75.58-0.37%-12.02%  
Natural Gas2.59-0.27%-36.83%
I&E FX Window 4630.45%         -3.35%
Parallel Market  751.5-0.07%-1.55%
Nigerian Treasury Bill (Average Yield %)6.97%0.02%13.37%
FGN Bonds (Average Yield %)14.34-0.01%21.32%
Gold  1,977.290.98%8.99%
Cocoa 3,068.002.57%17.74%
  • NGX All-Share Index (ASI) opens this week at 52,187.93. It inched up 78.50 (0.15%) on Friday, representing a 1-week loss of 0.05%, a 4-week gain of 2.06%, and an overall year-to-date gain of 1.83%.  The Monetary Policy Committee (MPC) of the CBN meets today and tomorrow. Given the pause on removal of subsidy, we expect the Bank to leave rates at 18%.

In the communique released by the Bank regarding its decisions at the last MPC meeting, this quote is the major reason for the rate increase to 18%: “The MPC observed the continued upward risk to price development around expectations on the removal of the PMS subsidy; rising prices of other energy sources; continuing exchange rate pressure; and uncertain climatic conditions. This in the view of members, provides a compelling argument for an upward adjustment of the policy rate, albeit less aggressively”.

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