• Year Ahead 2020

    Re-risking the financial system


    Oil prices: In a global oil market threatened with over-supply, it appears that OPEC, and its ally Russia, are doing a good job of limiting production.



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  • Asset management

    We are a trusted fiduciary that is focused on delivering investment solutions for our diverse range of clients based on our broad and accurate insight of financial markets.


 

Coronation Research issues 2020 Economic Outlook for Nigeria

Re-risking the financial system

 

Oil prices: In a global oil market threatened with over-supply, it appears that OPEC, and its ally Russia, are doing a good job of limiting production. Oil price volatility was reduced in 2019 and prices (Brent) held up above US$60.00/bbl most of the time. With further OPEC cuts announced last December, we think 2020 may well be a repeat performance. The current futures curve supports this view. We look for oil to average at least US$60.00/bbl this year.

Due to oil’s role in a) supplying US dollars to the Central Bank of Nigeria (CBN), and b) inspiring confidence in Nigerian markets generally, this outlook forms an integral part of our foreign exchange and interest rate view. We believe that oil prices below US$50.00/bbl, for example, could challenge foreign exchange and interest rate management.

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We are committed to value investing; as such, we strongly believe that asset prices will reflect their true value over time. Through diligent research and the application of qualitative skills based on experience and quantitative investment tools, we identify underlying assets and securities that will outperform over time when building investment solutions for our clients. Our research is carried out using a combination of top-down and bottom-up approaches, beginning with the evaluation of trends in global financial markets and assessing their implications on regional and domestic markets.

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