"Today's print will test whether momentum is extending beyond Q1's services-led upswing. The statistics office reported that services remained the economy's anchor in Q1, with telecoms/ICT a notable bright spot. The Q2 year-on-year growth rate is expected to improve compared to the previous reading, although growth is expected to be modest on a quarter-on-quarter basis. A result close to that range would reinforce the "steady-but-unspectacular" recovery narrative supporting the stock market."
"Nigerian equities firmed ahead of today's GDP release, with the NGX All-Share Index up to around 0.21% on Thursday. However, the market could remain exposed to the declining oil prices. The latter are on a second successive session of losses after a brief rebound. The downside risks and volatility could affect sentiment and leave some investors on edge. Next up is the CBN MPC meeting on 22 - 23 Sep, where the committee weighs inflation and growth concerns, with the policy rate currently held at 27.50%."
Nigerian equities rose ahead of the GDP print, with the NGX All-Share Index up about 0.21% on Thursday. Services remained the economy's anchor in Q1, with telecoms and ICT as notable bright spots. Q2 year-on-year growth is expected to improve on the previous reading, while quarter-on-quarter growth is likely to be modest. A Q2 result within that range would reinforce a steady-but-unspectacular recovery narrative supporting the stock market. Declining oil prices, on a second successive session of losses after a brief rebound, pose downside risk and could increase market volatility. The CBN MPC meets on 22–23 Sep with the policy rate at 27.50%.
Read at London Business News | Londonlovesbusiness.com
Unable to calculate read time
Collection
[
|
...
]