GTI 5 WEEKLY STOCK PICKS FOR THE WEEK ENDING 27TH NOVEMBER 2015

THE LAST MPC FOR THE YEAR STARTS IN THE MIDST OF A BEARISH MARKET TREND

Dear Investor,

The Monetary Policy Committee will hold its last MPC meeting for the fiscal year 2015 today the 23^rd of November 2015 and tommorow the 24^th of November 2015.

The MPC in their last meeting, voted to retain the key bench mark rate at 13% and to harmonize the CRR for both public and private sector deposits at 25%.   Considering that inflation was on the increase and the bearish sentiments in the equities market was biting hard, that decision was apt in other to put some satibility in the economy.  The major talking point for this MPC will be;

·         2016 budget and fiscal policy

·         Inflation

·         Economic growth

·         Exchange rate.

The moderation in inflation to 9.3% from 9.4% between September and October, as well as the stronger GDP growth reported in October are strong indications that the tight monetary policy disposition of the committee is effective and achieving desired result.

We expect that the MPC will still retain status quo until next year so that the effect might seep deeper into the system , but will need to ease the rate probably in the first MPC for 2016 considering that the proposed 2016 budget which focuses on jump- starting the economy needs to be funded.

click link for full report

https://drive.google.com/file/d/0B7bfqve2E3QrZmtpVTRlX0Z0ejQ/view?usp=sharing