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Nigerian equities firmed ahead of today’s GDP release, with the NGX All-Share Index up to around 0.21% on Thursday. 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.
Join our WhatsApp ChannelHowever, 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%.
Sector details from today’s GDP, especially the balance between services resilience and oil price variability, could shape positioning for the meeting, Daniel Wesonga, Pepperstone’sSenior Sales Manager, said in an exchange with Prime Business Africa Friday morning.
