Nigeria’s purchasing manager’s index report for July shows a contraction in the manufacturing sector for the third consecutive month, despite a minor improvement from the last two months, as the economy continues to grapple with the ripple effects of the coronavirus pandemic.
Manufacturing PMI in the month of July stood at 44.9 index points, indicating marginal growth compared to 41.1 and 42.4 index points recorded in June and May 2020 respectively, data from the Central Bank of Nigeria shows. View the full report here.
Below is the Ventures Africa Weekly Economic Index, for the week ending 31st of July 2020. This economic index gives you a glimpse into other recent activities in Nigeria’s economy as well as changes and prices that could affect the economy:
Nigerian Stock Exchange
Data released by the Nigerian Stock Exchange as of July 29, 2020, showed that the NSE All-Share Index and Market Capitalization both appreciated by 1.09 percent to close the week at 24,693.73 and ₦12.882 trillion respectively. All other indices finished higher with the exception of NSE ASeM, NSE Consumer Goods, and NSE Oil/Gas Indices.
Top price gainers and decliners in the week under review:
Top five price gainers
Unity Bank Plc.
Mutual Benefits Assurance Plc.
Cornerstone Insurance Plc.
Prestige Assurance Plc.
Lafarge Africa Plc.
Top five price decliners
Smart Products Nigeria Plc.
NPF Microfinance Bank Plc.
Julius Berger Nigeria Plc.
Seplat Petroleum Development Company Plc.
Axamansard Insurance Plc.
Note: It was a brief trading week as the market opened for three days in observance of the public holidays (Thursday 30th and Friday 31st July 2020) declared by the Federal Government of Nigeria to mark the Eid-El-Kabir celebrations.
How did the Naira fare?
The Nigerian currency fell against the dollar at the close of last week, trading at ₦390 per dollar, a depreciation from the ₦383 a dollar recorded a week before. Meanwhile, the exchange rate at the black market on Friday went as high as ₦485/$1 on the back of dollar scarcity, according to Nigerian financial news platform Nairametrics.
How did the price of oil fare?
International benchmark Brent Crude on 31st of July 2020 slid from last week’s price of $44.45, closing at $44.12. Oil prices were on track for monthly gains on Friday – Brent crude posted a fourth month of gains and the United States crude a third as both rose from bottoms hit in April, during which much of the global population was in coronavirus lockdown.
But as the market prepares for more supply from the Organization of Petroleum Exporting Countries and its allies even as many regions still struggle to contain the pandemic, oil fell slightly toward $40 a barrel early Sunday. The cartel is expected to pump about 1.5 million barrels more this month than in July as it starts to roll back its historic production curbs meant to shore up prices amid the crisis.