Welcome to Nairametrics‘ summary of the daily performance of major economic indicators and highlights from trading sessions and key statistics such as Treasury Bills and Bonds. This is brought to you by Zedcrest.
This report is dated June 21st, 2019.
***NIRSAL moves to raise over N140bn for Agric financing***
Key Indicators
Bonds: The FGN Bond market traded on a relatively flat note, with only few volumes traded on some short and mid tenors. Yields consequently compressed marginally by c.1bp on the day.
We expect yields to remain relatively stable in the near term, even as market players’ position ahead of the FGN bond auction scheduled for Wednesday.
Treasury Bills: The T-bills market remained relatively flat, with yields relatively unchanged on the day, as a retail FX intervention drained some of the surplus liquidity in the system.
We expect yields to remain relatively stable in the near term, barring an OMO resumption by the CBN.
Money Market: Rates in the money market trended slightly higher by c.4pct, due to funding for the CBN’s retail FX intervention. The OBB and OVN rates consequently ended the session at 8.71% and 9.21%, with system liquidity currently estimated at c.N180bn positive.
We expect rates to tick higher opening the new week, as banks fund for the CBN’s weekly wholesale FX intervention.
[READ: How regulatory changes and tempered yield environment impacted Stanbic IBTC’s earnings]
FX Market: At the interbank, the Naira/USD rate remained stable to close at N306.95/$ (spot) and N356.92/$ (SMIS), whilst the NAFEX rate at the I&E window appreciated by 20k to close at N360.49/$. At the parallel market, the cash and transfer rates closed unchanged at N359.80/$ and N362.50/$ respectively.
Eurobonds: There was slight profit taking in the NIGERIA sovereigns, with yields marginally higher by c.5bps on the day.
Investors’ interests remained firm in the NIGERIA Corps, with the ETINL 24s and FIDBAN 22s almost impossible to source. We consequently witnessed renewed interests in other tickers including the UBANL and ZENITH 22s. Investors in the Access 2021 Subordinated Eurobond will be repaid $400m on Monday, following a call announcement by the Bank. This is considered a major cause of the recent rally in the NIGERIA corps.
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Disclaimer: Whilst proper and reasonable care has been taken in the preparation and accuracy of the facts and figures presented in this report, no responsibility or liability is accepted by Zedcrest Capital or its employees for any error, omission or opinion expressed herein. This report is not an investment advice or a research recommendation and should not be regarded as such. The information provided herein is by no means intended to provide a sufficient basis on which to make an investment decision.
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