November 3, 2017/Cordros Research
Highlights:
- Global equities impressed in October, thanks to strong corporate earnings, encouraging economic data, currency swings, and government decision.
- The prices of Nigerian equities closed higher for the first time in three months, principally on the back of the broadly impressive 9M-17 earnings.
- The overnight lending rate expanded by 500 bps to 19.25% (vs.14.25% last month), following substantial outflows via OMO auctions and FX sales.
- The Nigerian treasury bills market posted a negative return for the month of October, with average yield rising by 28 bps to 17.68%, from September’s 17.41%.
- Returns in the bond market remained positive, amidst sustained foreign investor participation, and relatively improved liquidity position.
- The NGN weakened in the I&E FX window, while it appreciated in the parallel market; amidst sustained interventions by the apex bank.