Stanbic IBTC is expected to release Nigeria’s Purchasing Manager’s Index for June, while the United States Bureau of Labour Statistics will release the country’s unemployment rate on Friday.
Thursday July 4
Fidson to hold its 25th Annual General Meeting
Fidson Healthcare Plc, a pharmaceutical company, will be holding its annual general meeting on Thursday, July 4, 2024, at the Balmoral Convention Centre, 30 Mobolaji Bank-Anthony Way, Ikeja, Lagos, at 10 a.m.
The following businesses will be discussed at the meeting: authorisation to raise additional capital of up to N20 billion naira or such amount as the directors may deem fit through an allotment of shares to be issued, whether by way of a public offering, rights issue, strategic allotment, private/special placement, or a combination of methods, subject to terms and conditions to be determined by the directors.
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To seek the approval of shareholders for the payments of 60 kobo per 50 kobo of ordinary shares, amounting to a total of N1.38 billion as a dividend. Which is
Other matters to be discussed include the authorization of directors to fix the remuneration of the auditors, disclosure of the remuneration of the managers of the company, and electing members of the audit committee in accordance with Section 404(3) of the Companies and Allied Matters Act, 2020.
Friday, July 5
FAO to release global food prices report
The Food and Agricultural Organisation (FAO) will be releasing its report on global food prices on Friday.
In May, global food prices rose for the third consecutive month as higher cereal and dairy product prices outweighed decreases in sugar and vegetable oil prices.
The UFAO price index, which tracks changes in the international prices of a set of globally traded food commodities, averaged 120.4 points in May, up 0.9 percent from its revised April level.
The combined average prices of cereal and dairy products drove global food prices by 122 points in the period under review.
Cereal prices increased the most to 119 points in May from 112 points in April, indicating a 6.3 percent rise on a month-on-month basis. However, it declined 8.2 percent from its value a year ago (129 points).
According to the FAO, the sharp monthly rise in cereal prices was due to growing concerns about unfavourable crop conditions for the 2024 harvests, which affected crop yields in parts of Europe, Northern America, and the Black Sea region.
“Business activity in Nigeria rose to the highest in four months in May 2024 as a result of the improvement in the strength of the currency.”
Purchasing Managers Index for June
Stanbic IBTC will be releasing its Purchasing Managers’ Index (PMI) on Monday.
In May, the PMI by Stanbic IBTC Bank rose to 52.1, up from 51.1 in April. The reading pointed to a sixth consecutive monthly improvement in business conditions in the Nigerian private sector, the most pronounced since January.
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Readings above 50.0 signal an improvement in business conditions, while those below show deterioration.
Business activity in Nigeria rose to the highest in four months in May 2024 as a result of the improvement in the strength of the currency.
“Both output and new orders increased at sharper rates than in April, amid improving consumer demand. Growth was recorded across all four monitored sectors, with the sharpest rise in manufacturing,” the report stated.
It said an improvement in the strength of the currency over the past month led to sharp slowdowns in rates of increase in purchase prices and output charges, although inflationary pressures remained substantial nonetheless.
“Meanwhile, there were further indications of easing inflationary pressures, although they remained significant due to currency weakness,” it added.
US to release June’s unemployment rate
The US Bureau of Labour Statistics will be releasing its unemployment data for June 2024 on Friday.
The unemployment rate ticked higher to 4.0 percent in May, compared to 3.90 percent last month and 3.70 percent last year. This is, however, lower than the long-term average of 5.69 percent.
The jump in the unemployment rate in May reflected a further decline in household employment.
The mixed report boosted the odds that the Federal Reserve will start cutting interest rates before September, as the labour market remains fairly tight.
The unemployment rate measures the percentage of the total workforce that is not working yet actively seeking employment.
A reading that is higher than forecast is generally negative for the USD, while a lower than forecast reading is generally supportive for the USD.
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Naira remains weak despite rise in external reserves
The naira has remained weak even as Nigeria’s external reserves continue to rise.
The foreign exchange reserves hit a high of $34.07 billion in June, the highest since March 2024, data from the Central Bank of Nigeria has revealed.
Nigeria’s external reserves hit a three-month high last week, rising to $33.5 billion, but have now reached a new milestone as of June 26.
BusinessDay reported that about $5.95 billion from the World Bank and Afreximbank entered the Nigerian economy, helping to strengthen Nigeria’s external reserves but yet to lift the value of the naira.
On Thursday, the naira lost 0.15 percent as the dollar was quoted at N1,510.10 compared to N1,507.83 quoted on Wednesday at the Nigerian Autonomous Foreign Exchange Market (NAFEM).
At the parallel market, commonly referred to as the black market, the naira lost 1.32 percent of its value as the dollar was quoted at N1,520.
Nigeria’s central bank governor, Yemi Cardoso, has, however, expressed confidence in the FX market, stating in an interview that the era of naira volatility has ended.
He said, “Liquidity has come back into the market; the naira panic is over.”
