Nigerian Financial Markets Report

Dear Esteemed Client:

At the Nigeria Treasury Bills Auction conducted today by the Debt Management Office (DMO), marginal rates closed lower across maturities relative to the last auction. The DMO rolled over maturing Nigerian Treasury Bills (NTB) of ca ₦150.60bn across 91-day, 182-day and 364-day maturities with marginal rates dropping 130bps, 177bps and 163bps, relative to last auction, to settle at 6.495%, 7.23% and 8.37% respectively. Also, the statistics department of the Central Bank of Nigeria(CBN) earlier today released the Purchasing Managers’ Index (PMI) for November 2019 with data showing broad base improvement in both manufacturing and non-manufacturing PMI. The manufacturing PMI rose to 59.3 points (October: 58.2points), printing above 50 points threshold for the 32nd consecutive time since April 2017. The manufacturing PMI was supported by increases in production level, new orders, supplier delivery time, employment level and raw material inventories. Similarly, the composite PMI for the non manufacturing sector stood at 60.1 points (Previous: 58.2points) for the thirty first consecutive time with the index showing that all 17 sub-sectors surveyed recorded growth.

In our view, the readings from Manufacturing and Non-Manufacturing PMI for October and November are already pointing towards a positive GDP growth outlook for fourth quarter 2019 especially if the strong momentum is sustained into December. Moreover, the effect of land boarder closure may be impacting on the rising level of manufacturing and non manufacturing PMI. Read more…

Important Disclaimers
This document has been issued and approved by AIICO Capital and is based on information from various sources that we believe are reliable. However, no representation is made that it is accurate or complete. While reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors or fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer or solicitation to any person to enter into any trading transaction.
Investments discussed in this report may not be suitable for all investors. This report is provided solely for the information of AIICO Capital clients who are then expected to make their own investment decisions. AIICO Capital conducts designated investment business with market counter parties and customers and this document is directed only to such persons. AIICO Capital accepts no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. This report is for private circulation only and may not be reproduced, distributed or published by any recipient for any purpose without prior express consent of AIICO Capital. Users of this report should bear in mind that investments can fluctuate in price and value. Past performance is not necessarily a guide to future performance.
AIICO Capital is regulated by the Securities and Exchange Commission, and is licensed to provide fund and portfolio management services in Nigeria