7/3/2017/Cordros Research

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HIGHLIGHTS

• Global equities ended February on a positive note, with the upbeat mood supported by positive earnings report, encouraging economic data, monetary policy actions, currency swings, and most significantly, the “Trump factor”.

• Nigerian equities continued with the run of poor performance, with the All Share Index (ASI) posting a monthly loss of 2.72% in February. The loss, lower than the 3.12% decline recorded in January, was the result of investors exiting consumer goods stocks.

• The overnight money market rate expanded by 691bps to 13.83%, driven by sustained pressure on system liquidity.

• Average yield increased by 63bps in the NTB market, as tight liquidity position constrained demand.

• The bond market pared January’s loss, with average yield contracting by 10bps in February.

• In display of confidence following the improvement in the external reserves (up 9% at the end of January), the CBN fleshed its support for the naira in February, causing the LCY to appreciate significantly against the major foreign currencies at the parallel market.