By FDC Research,
The NGSEASI lost approximately 7.23% in the first half of September, being the single largest erosion of shareholder value in 2018 so far. The outflow of hot money by jittery portfolio investors helped exacerbate an already precarious situation. Investors have been particularly nervous about the MTN saga and the lack of clarity as to whatever wrongdoing if any.
The MPC Meeting next week will be pivotal in determining the direction of interest rates especially at a time of new fiscal policy leadership under a new finance minister. While the MPC’s decision can either make or mar the present situation, the decision making process will be particularly difficult, given the backdrop of rising consumer prices, depleting external reserves and potential exchange rate pressure.