Since the global oil price crash in 2014, Nigeria has been one of the hardest-hit economies due to its over-dependence on oil as its main source of revenue. China’s economic slowdown, as well as the United States’ rate hike, also affected its economy adversely. As a result, Nigeria’s economic growth declined drastically, with its currency falling to an all-time low. In order to save the economy from a complete collapse, the Central Bank of Nigeria (CBN) put stringent monetary policies in place, which saw investors pulling out of the country.

However, it looks like the country’s economic situation is about to change as the CBN, which once showed that its decisions were not independent of the federal government, seems to be taking a different turn. But it is still uncertain if the CBN will be able to sustain some of its recent policies, which are geared towards saving the Naira from falling.

Below is the Ventures Africa Weekly Economic Index, for the week ending 4th of August 2017. This economic index gives you a glimpse into the recent activities in Nigeria’s economy as well as changes that could affect the economy:

How low is the external reserve?

Data from the website of the Central Bank of Nigeria reveals that as of 4th August 2017, Nigeria’s external reserve increased by $152,855,015 to $30,927,296,027 from $ 30,774,441,012 recorded on 28th July 2017.

How did the Naira fare?

Weekly Economic Index
During the week under review, the Naira remained unchanged at the parallel market as it was sold at 364 Naira/$ on Friday 4th August 2017, which is the same recorded on Friday 28th July 2017.

According to reports, since the implementation of the flexible exchange rate policy, the forces of demand and supply had been the sole determinant of the exchange rate.

What happened to the Purchasing Managers’ Index (PMI)

The Central Bank of Nigeria, on Monday, 31st of July 2017 released the July 2017 report on Purchasing Mangers Index (PMI) which measures business performance. According to the report, Purchasing Managers’ Index recorded an increase in activities in July 2017 as it saw a 0.2 index point increase from 56.8 Index Point in June to 57.0 Index point in July.

The composite PMI for Manufacturing recorded an increase in activities in July 2017 as it increased to 54.1 Index point. The index is above the 50-benchmark index points and this increase represents a fourth consecutive month expansion. 11 out of 16 sub-sectors reported growth in the month under review. These sub-sectors are appliances & components; computer & electronic products; cement; primary metal; chemical & pharmaceutical products; food, beverage & tobacco products; textile, apparel, leather & footwear; printing & related support activities; paper products; electrical equipment and transportation equipment. The petroleum & coal products; fabricated metal products; furniture & related products; nonmetallic mineral products and plastics & rubber products reported a decline in the period under review.

The composite PMI for the non-manufacturing sector grew to 52.7 in May 2017 after 16 consecutive months of contraction. Of the 18 non-manufacturing sub-sectors, 10 recorded growth in the following order: agriculture; transportation & warehousing; educational services; electricity, gas, steam & air conditioning supply; utilities; information & communication; water supply, sewage & waste management; accommodation & food services; healthcare & social assistance; and finance & insurance. The remaining 8 sub-sectors recorded contraction in the order: construction; professional, scientific, & technical services; public administration; management of companies; arts, entertainment & recreation; real estate rental & leasing; repair, maintenance/washing of motor vehicles; and wholesale/retail trade

The composite PMI for the non-manufacturing sector grew to 54.4 in July 2017 representing the third consecutive month of growth. 16 out of the 18 nonmanufacturing subsectors recorded growth in the following order: agriculture; public administration; utilities; information & communication; finance & insurance; transportation & warehousing; educational services; management of companies; repair, maintenance/ washing of motor vehicles; health care & social assistance; electricity, gas, steam & air conditioning supply; real estate, rental & leasing; wholesale trade; professional, scientific, & technical services; water supply, sewage & waste management and accommodation & food services. The construction and arts, entertainment & recreation sub sectors recorded a contraction in the period under review.

According to nairametics, this sustained positive trend in the Purchasing Manager Index reflects the positive perception of business owners and manufacturers on the series of recent policy interventions and economic development plans by the federal government. For the Manufacturers generally, benefit from the CBN’s increased Fx interventions because it boosted Fx liquidity significantly and as such aided their importation of inputs for their production activities.

The Nigerian Stock Market

Weekly Economic Index

According to the recent data released by the Nigerian Stock Exchange, as of 4th August 2017, the market closed trading on a positive note as the all share index increased 1.52 percent from the previous week ending 28th July 2017. Market capitalization at the close of trading was 12.899 trillion, which is a 1.53 percent increase from N12.705 trillion recorded the previous week. The All Share Index for the week under review closed at 37,425.15.

Top five price Gainers and Decliners in the week under review:

Top five price Gainers

  1. C & I Leasing Plc.
  2. Dangote Sugar Refinery Plc
  3. Linkage Assurance Plc
  4. Nascon Allied Industries Plc
  5. Livestock Feeds Plc

Top five price Decliners

  1. Morison Industries Plc.
  2. Red Star Express Plc
  3. Cutix Plc.
  4. University Press Plc.
  5. Npf Microfinance Bank Plc

Dividends announced so far in 2017

Tracking companies that have announced their dividends are very important for the country as it affects the share price of the company. This also enables people to know if they are eligible to collect the dividend, when it will be approved and when it will be paid. So far the following companies who have announced their full year reports are:

    1. Greif Nigeria Plc
    2. United Capital
    3. Nigerian Breweries
    4. Transcorp Hotels Plc
    5. Africa Prudential
    6. Zenith Bank
    7. Dangote Cement
    8. Nestle Nigeria
    9. Access Ban
    10. Guaranty Trust Bank
    11. Total Nigeria Plc
    12. Lafarge Africa Plc
    13. Custodian and Allied Plc
    14. MRS Oil Nigeria Plc
    15. United Bank for Africa Plc
    16. GlaxoSmithKline Consumer Nig. Plc
    17. Unilever Nigeria Plc
    18. FCMB Group Plc
    19. Dangote Sugar Refinery Plc
    20. Stanbic IBTC Holdings Plc
    21. Pharma-Deko Plc
    22. UACN Plc
    23. AIICO Insurance Plc
    24. Chemical and Allied Products Plc
    25. Trans-Nationwide Express Plc
    26. AXA Mansard Insurance Plc
    27. Mobil Oil Nigeria Plc
    28. Beta Glass Plc
    29. Infinity Trust Mortgage Bank Plc
    30. Okomu Oil Palm Company Plc
    31. NASCON Allied Industries Plc
    32. Gases Plc
    33. Learn Africa Plc
    34. NEM Insurance Plc
    35. Nigerian Aviation Handling Company Plc
    36. Med-View Airline
    37. Fidelity Bank
    38. Okomu oil
    39. Regency Alliance
    40. Presco Plc
    41. Consolidated Hallmark Insurance Plc
    42. Nestle Nigeria Plc
    43. Aluminium Extrusion Industries Plc
    44. Berger Paints Plc.,
    45. FBN Holdings Plc.
    46. NPF Microfinance Bank
    47. Newrest ASL Nig
    48. UAC of Nigeria Plc
    49. Chemical and Allied Products Plc
    50. Continental Reinsurance Plc
    51. Ashaka Cement
    52. Smart Products Nigeria Plc
    53. Lasaco Assurance Plc
    54. Eterna Plc
    55. The Initiates Plc
    56. The Initiates Plc
    57. Fidson Healthcare Plc
    58. eTransanct
    59. Conoil
    60. UPDC Real Estate Investment Trust
    61. Redstar Express
    62. University Press
    63. Honeywell Flour Mills
    64. Tripple Gee and Company
    65. Flour Mills Nigeria
    66. Stanbic IBTC ETF 30
    67. Vitafoam Plc

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