Wealth Wednesday
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Market Data
Local
Global
*Data as of 4pm WAT
Market News
Local
NUPRC seeks stakeholders’ inputs on 7 more petroleum regulations - BNR
The Nigerian Upstream Petroleum Regulatory Commission (NUPRC) is soliciting input from stakeholders on seven additional petroleum regulations. These regulations will cover various aspects of the oil and gas sector, aiming to ensure that operations are conducted efficiently and in compliance with existing laws.
IFC, Morocco's OCP launch $800mln Africa food supply project - Zawya
The International Finance Corporation (IFC) and Morocco's OCP Group have joined forces to initiate an $800 million project to enhance food supply chains across Africa. This project aims to bolster agricultural activities, improve crop yields, and enhance food security. As part of the project, a $75 million program has been launched to support smallholder farmers and agribusinesses.
PenCom Records N16.73trn Pension Asset By Q3 2023 - Daily Trust
As of the third quarter of 2023, Nigeria's Pension Commission (PenCom) has reported a total pension asset value of N16.73 trillion. This indicates substantial growth in the country's pension fund, reflecting the contributions of both employers and employees. The increase in pension assets underlines the importance of the pension sector in Nigeria's financial landscape.
CBN Supplies $5.78bn Foreign Exchange In H1, Down By 27% - Leadership
In the first half of 2023, the Central Bank of Nigeria (CBN) supplied $5.78 billion in foreign exchange. This figure represents a 27% decrease compared to the previous year. The reduced supply of foreign exchange aligns with the CBN's efforts to manage and prioritize its foreign reserves amid global economic uncertainties.
Presidential panel plans tax cut - Punch
A presidential panel in Nigeria is considering the possibility of reducing taxes in a bid to stimulate economic growth and investment. This move comes as the government aims to create a more attractive environment for businesses, potentially boosting job creation and economic development. The panel is examining various taxation areas.
Global
First U.S. weapons arrive in Israel, Biden calls Hamas attack ‘sheer evil’ - CNBC
The Israel-Hamas conflict depict a dangerous escalation in the ME. With over 1,100 fatalities since the conflict began, the situation has global repercussions. Oil prices have surged over 5%, reaching above $87 per barrel. This conflict could disrupt oil production in the region. While Israel's role in global oil supply is minor, the conflict raises concerns about the involvement of the U.S.
Weekly Investment Watchlist
Market Commentary:
Asia and Australia:
Asian equities mostly ended higher on Wednesday. The MSCI Asia-Pacific ex Japan reached a two-week high, led by South Korea on the back of positive tech results. The Hang Seng in Hong Kong also rose, particularly in the growth sectors. Mainland China stocks had gains, and Taiwan’s gains were more subdued as it caught up after holidays. Australia’s market closed higher. In Southeast Asia, most markets rose except for Singapore. India extended its early gains to reach three-week highs. Japan’s market closed mixed, with the Nikkei rising while the Topix saw a slight decline.
In Japan, there are discussions emerging that the Bank of Japan (BoJ) may revise its inflation forecasts once again during the next BoJ meeting, which includes their Quarterly Outlook scheduled for October 31, 2023. During their July forecasts, they had already revised up the Headline Consumer Price Index (CPI) forecast from 1.8% to 2.5% and the Core CPI from 2.5% to 3.2%. Now, there is talk that the headline forecast may be increased from 2.5% to 3%, signaling the BoJ’s acceptance that inflation is becoming entrenched and potentially moving closer to ending easing measures.
Strong quarterly results from Samsung Electronics and LG Energy Solution contributed to the Kospi’s outperformance. Samsung reported Q3 operating income of KRW 2.4 trillion ($1.8 billion), reflecting a 13% sales drop, which was roughly in line with analyst estimates and a significant improvement compared to Q2's 95% income slide.
China saw a 4.7% year-on-year increase in vehicle sales in September, marking the second consecutive month of growth. This was aided by tax incentives for electric vehicles (EVs) and other environmentally friendly cars, along with increased discounts. This positive news suggests an attempt to boost consumption in China.
Europe, Middle East, Africa:
European equity markets showed mixed performance after rebounding from earlier lows. The French CAC underperformed, particularly due to weakness in the luxury goods sector following an update from LVMH.
LVMH, the luxury conglomerate, reported results indicating challenges for the European luxury industry. They reported a drop in sales, primarily attributed to issues in China, which accounts for nearly 20% of their revenues. In addition, there were discussions about a decline in spending due to higher inflation and economic turbulence. Q3 sales reached 9%, falling short of the expected 11.5% and the 21% achieved in Q2.
The European Central Bank’s Consumer Expectations Survey indicated a marginal increase in consumer inflation expectations over the next 12 months, rising to 3.5% from the previous figure of 3.4%. Over a three-year horizon, expectations edged up for the second month to 2.5% from the previous 2.4% (as of July).
Maersk reported a reduction in capacity on Far East Asia to Europe routes due to lower demand. The company had previously noted concerns regarding muted global macroeconomic growth, attributed to ongoing pressure from higher interest rates and potential recessionary risks in Europe and the United States.
The Americas:
Birkenstock launched its IPO on the New York Stock Exchange (NYSE). The German premium footwear company priced its shares at $46 per share, giving it a valuation of approximately $8.64 billion. This pricing was slightly lower than the midpoint of the range they had considered, which was $44 to $49 per share. Despite the slightly lower pricing, it still represents a significant market cap, larger than companies like Crocs and On Footwear. Birkenstock trades under the ticker “BIRK.”
The NFIB Small Business Optimism Index in the United States decreased to 90.8 from 91.3. Small business owners continue to express concerns about inflation. Furthermore, 43% of respondents reported that it was more challenging to fill job positions, indicating labor market tightness. About 23% planned to raise compensation in the next three months. The net percent of owners raising average selling prices increased by two points to a seasonally adjusted net of 29%, which is indicative of high inflation levels.
The Week Ahead:
Monday:
Tuesday:
Wednesday:
Producer Price Index (PPI) (US)
Thursday:
Gross Domestic Product (GDP) (UK)
Consumer Price Index (CPI) (US)
Unemployment Claims (US)
Friday:
UoM Consumer Sentiment (US)
Investment Tip of The Day
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Meme of the Day
