Global Markets
In September, global equity market performance was largely shaped by the decision of the U.S. Federal Reserve to reduce its benchmark policy rate as inflation tapered (c.2.5% YoY in August vs 2.9% in July). The Fed fund rate, which was reduced by 50bps, propped up the MSCI World Index by 1.69%. In the same vein, the expected second-order effect of the rate cut on corporate debt burden and consumer spending led to a greater appetite for riskier assets, with the S&P 500 and the NASDAQ gaining 2.02% and 2.48%, respectively, propelled by Apple (+1.40%), Microsoft (+4.16%), and Nvidia (+3.28%).
Nigerian Equities
In September, the All-Share Index staged a rebound, advancing by 2.1% to push the index to 98,558.79 points with a market capitalization of N56.6 trillion. The outing culminated in a 265bps increase in YtD return to 31.81%. For specifics, the performance was mainly driven by notable appreciations in energy heavyweights - GEREGU (+15.0%) and SEPLAT (+10.0%). These gains, coupled with price increases in MTNN (+6.1%) and tier-1 banks - UBA (+23.3%) and FBNH (+20.0%) - outweighed the selloffs in TRANSPOWER (-9.99%), BUACEMENT (-3.4%), and OKOMUOIL (-13.1%). CAVERTON (+72.9%) was the best-performing ticker, while LEARNAFRICA (-24.5%) experienced the most significant price decline.
