Burning economic issues

• Nigeria’s Forcados terminal production restored

• Aggregate borrowing ceiling set at $22.08bn in 2017

• FG to float Diaspora bond soon, targets $21bn

• Guinness Nigeria to increase local sourcing by 44%

• Naira crashes again: Parallel market (N470/$), Interbank (N307.28/$)

• US GDP growth estimated to be sharply higher at 2.5%

Domestic commodity prices

• Mixed movements in the domestic market this week

• Rice falls to N20,000 for a 50kg bag

• Garri increased to N15,000, Palm oil up to N17,000

• Impacting the CPI levels in October

Domestic commodity prices

LAGOS ONITSHA Commodities

C U R R E N T P R I C E S

KANO

Palm Oil (25L)

Maize (50kg)

Tomatoes (50kg)

Garri (50kg)

Rice (50kg)

Flour (50kg)

Sugar (50kg)

Beans (50kg)

Cement (50kg)

Semolina(10kg) N3,100

N15,000

N20,000

N11,000

N19,000

N22,500

N2,200

N13,250

N8,000

N3,150

N15,200

N19,400

N11,000

N19,500

N22,300

N2,200

N13,350

N7,800

N3,120

N15,500

N20,200

N11,000

N19,800

N22,800

N2,300

N13,450

N8,000

N2,300

N8,000

N12,000

N8,500

N8,000

N9,000

N1,400

N9,000

N8,000

N3,100

N15,000

N22,600

N11,000

N17,000

N19,000

N2,200

N13,250

N8,000

N17,800 N17,200 N6,000 N17,000 N17,000

L a g o s P r i c e

1 year Low 1 year High

Pri

ce E

last

ic

Pri

ce In

ela

stic

Consumer goods

Current Price – L a g o s

N100

N250

N350

N370

N1,800

GOODS

Bread Loaf

Coke (60cl)

Beer (60cl)

Semovita (1kg)

Indomie (1 cartoon)

Stock market

•NSE ASI up by 0.08% to close at 27,120.39pts

•Presco’s net income surged by 98.25% to N6.8bn in Sept’16 from N3.43bn in Sept’15

Share Prices

(N) W-O-W

(24 Oct – 26 Oct) Y-T-D

(Jan - Date)

Nestle 797.95 0.26% 7.20%

Guinness 80.00 0.62% 33.10%

Honeywell 1.18 9.23% 36.60%

Flourmill 19.50 2.50% 6.30%

Cadbury 11.88 - 30.70%

NB 146.00 0.34% 7.40%

Dangote Sugar 6.50 4.50% 7.80%

Presco 42.3 5.09% 28.20%

Oil markets today

O I L

BRENT

WTI

L N G

NATURAL GAS

2.74%

2.65%

3.70%

34.28%

33.79%

17.17%

$49.98pb

$49.18pb

$2.73MMBtu

Oil prices slips to $49

• Brent crude 2.74% to $49.98pb

• WTI 2.65 % to $49.18pb

• Prices declined on concerns over OPEC’s output deal

• Losses were capped by the draw in US crude inventory

• Stockpiles fell by 553, 000 barrels

• Contrary to the 1.7mb build up projected by analysts

Agric commodities

Graphic Design

Wheat Corn Cocoa Sugar

•Cocoa prices up

1.24% to $2,660/mt

•Illegal miners in

Ghana, popularly

known as Galamsey,

threatens cocoa

production

•Sugar prices down

1.46% to $22.87/pound

•Prices down on constant

supply and limited offtake

•Corn futures up

1.83% to $3.55/bushel

•Supported by slow

corn harvesting in the

US and France

•Humid weather

delaying harvests in

the Black Sea region

•Wheat futures up

2.19% to $4.12/bushel

•Wheat prices rose as

the Euro weakened and

Egypt supported export

demand

Outlook – oil prices

• Higher US growth rate will inspire the Fed to increase interest

rates

• Stronger dollar will push oil prices lower

• All eyes are on November OPEC meeting

• Arab producers (Saudi Arabia, UAE and Kuwait) hold the ace

Outlook – agric prices

Grains

Soft

SUGAR

• Slowing demand for sugar despite deficit will weigh on futures

COCOA

• Galamsey in Ghana and crop disease in Ivory coast will prop

up prices

• Weaker euro will spur demand for grain futures in Europe

• Slow grain harvests will support prices in the near-medium

term