Sept 5, 2016/Cordros Research

• Global equity markets (except in the U.S.) extended gains in August, with crude oil, central banks actions and economic data playing host.

• Nigerian equities declined for the second consecutive month, with the benchmark NSEASI down by 1.47% in August, as investor sentiment remained dampened by weak macro-economic fundamentals.

• Interbank lending rates rose higher across all tenors following a drop in system liquidity, owing to substantial outflows from aggressive OMO operations by the apex bank.

• Selloffs drove treasury bills yields higher m/m following the late July MPC meeting, expanding both primary and secondary market yields.

• The bonds market was predominantly bearish with average yield closing slightly higher m/m.

• The Naira touched record low levels in both the official and parallel market segments in August. However, while it recovered to appreciate m/m at the official market, the LCY depreciated further at the parallel segment.