In the global space, the selected markets traded on a mixed note as US market closed in the green following the release of an impressive GDP growth of 3.20% in Q1 2019 while the Chinese market witnessed one of the worst performing week since 2016, as the CSI 300 fell by 5.61% as investors priced in expectation of a tight monetary policy, including poor corporate earnings reports.
Overnight rate (OVN) and Open Buy Back (OBB) rose to 17.29% and 16.43% from 10.57% and 9.86% respectively. Consequently, the average money market rate rose by
6.65% to settle at 16.86%. Major outflow for the week included: OMO Sales of cN161.69 bn, Weekly Wholesale, Invisible and SME FX auction of $210mn, Bond auction of cN97.40bn and Biweekly Retail FX auction while Major inflow for the week included: OMO maturity of cN30bn and CBN retail FX auction refund of cN175bn. Barring any significant liquidity mopping action of the CBN, the money market rates are expected to trend lower due to expectation of inflow from FAAC payment and OMO maturity of N62 billion.
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