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…