November 3, 2016/Cordros Research
Highlights:
- Global equity markets, with the exception of Wall Street, were mostly upbeat in October; the key drivers being economic data, corporate earnings, the movement of crude oil prices, and political activities in the U.S.
- Nigerian equities underperformed in October, with the All Share Index (ASI) posting a monthly loss of 3.94%. The loss, the biggest since July, came amid broadly subdued July to September corporate earnings and profit-taking on the gains recorded in September.
- The overnight rate increased by 191bps month-on-month to close at 16.75%.
- Treasury bills came under pressure for the third consecutive month, as yields expanded following consistent supply of higher yielding OMO bills and low system liquidity levels.
- The bond market recorded another bullish monthly performance in October, with average yield contracting by 10bps.
- Liquidity concern lingered in the Nigerian FX market, despite the CBN’s intervention to support the naira.
