29 October 2018 :Even with Iranian output down 150,000 bpd in September alone due to the effect of U.S. sanctions, global crude oil prices have been on a downward trend in October, with Brent crude prices dropping from a year-high of $86.29/bbl at the start of the month to $77.21/bbl at the start of this week. Rising U.S. production, an ongoing U.S.-China trade war, and growing doubts over the pace of global GDP growth have all weighed on commodity markets. This bearish sentiment was also present in financial markets at the end of October as the DOW Jones and S&P 500 indices erased much of their 2018 gains. Oil prices have been very buoyant this year, rising from an average of $69/bbl in January to $79/bbl in September. 

Equity: With investors continuing to monitor earnings releases, sentiment was varied throughout last week though supported by strong gains at week close. Analysts expect further releases to sustain healthy activity levels in the market. However, analysts expect sentiment to still be mixed across board. 

Stock Watch: NB released its 9M’18 results last week, reporting a 38% decline in PAT toN14.8 billion and a Q3’18 standalone loss after tax ofN3.6 billion. The company’s stock fell 486bps in Friday’s session to settle atN88.00, a 35% YTD loss. 

Fixed Income: Following higher stop rates at the OMO and bond auctions last week, analysts anticipate bearish trading to start the week. Whilst analysts expect broadly negative investor sentiment in the treasury bills market, analysts foresee milder yield advancement on bonds given market anticipation of reduced domestic government borrowing.

Reporting for EasyKobo on Monday ,29 October 2018 in Lagos, Nigeria

Source: Vetiva Capital Management Limited