Weekly Economic Update (Oct 14th – Oct 18th)

Dear Client, Please find attached the Weekly Economic Update for the period of October 14th to October 18th.

Key Highlights:

• UK Inflation: Inflation in the UK has dropped to 1.7%, falling below the Bank of England's 2% target for the first time since April 2021. This decline raises expectations for a potential rate cut in November, with significant implications for the Nigerian economy.
• Oil Market: Oil prices decreased to a month-to-date low of $73.06 per barrel, driven by concerns over demand, particularly in China.
• Forex Market: The Naira weakened to an 8-month low of ₦1,725/$, influenced by high demand for the dollar relative to supply.
• Money Market: Liquidity remained tight, but expected inflows from the FAAC allocation may help ease this situation.
• Fixed Income Market: The average benchmark yield for FGN bonds rose, indicating a bearish trend across the market.
• Stock Market: The NGX ASI increased by 0.48%, with market capitalization growing significantly despite a decline in trading volume.

The report also outlines the outlook for each market segment, highlighting anticipated trends and factors influencing market movements.

Investment Corner – “Don’t put all your eggs in one basket”

The age-old saying "Don’t put all your eggs in one basket" holds, especially in investing. Concentrating all your investments in a single asset class increases your risk exposure. If that one investment fails, you could lose everything. Diversification helps mitigate this risk by spreading your investments across different asset classes. This way, the poor performance of one investment can be balanced by gains in others, ultimately protecting your portfolio and ensuring more stable long-term growth. Below are different investment classes you could consider and the associated level of risk. A financial expert can guide you through your investment journey. At GDL, your growth is our priority. If you have any questions or need assistance with your investment strategy, please don’t hesitate to contact us.