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Fixed Income Market Update: 12th July, 2021

ZOCK CAPITAL AND INVESTMENT LLC MARKET UPDATE AS AT 12TH JULY 2021 

Foreign exchange Market

At the I&E FX market, Naira appreciated by 0.06 percent as the dollar was quoted at ₦411.50 as against the last close of ₦411.75. Most participants maintained bids between ₦400.00 and ₦412.90 per dollar.

DAILY FOREIGN EXCHANGE RATES (DOLLAR / POUNDS / EURO )

FIXED INCOME SECURITIES  AND MONEY MARKET  UPDATE

The FMDQ Exchange has approved the quotation of the FBNQuest Merchant Bank Limited’s ₦7.34 billion series 19 commercial paper under its ₦100.00 billion commercial paper programme on its platform. The net proceeds will be used to support the Company’s short-term funding requirements.

The secondary market treasury bills  closed on a quiet  note, with the average yield across the curve remaining unchanged at 6.89 % . Average yields across short, mid and long term maturities closed at 4.58 %, 5.57 %, and 8.28 % , respectively.
In the OMO bills market, the 11-Jan-22 maturity bill recorded the highest yield dip  of 51 bps. However,  the average yield across the curve decreased by 13 bps to close at 9.76 % as against the last close of 9.89 %. Buying interest was seen across short-term, medium-term, and long-term maturities with average yields falling by 9 bps, 25 bps, and 4 bps, respectively.

TREASURY BILLS  PRIMARY MARKET AUCTION  (PMA).

BENCHMARK SECONDARY MARKET TREASURY BILLS

MONEY MARKET

As of July 12, the Overnight (O/N) rate decreased by 5.50 % to close at 15.00 % as against the last close of 20.50 % , and the Open Buy Back (OBB) rate decreased by 5.25 percent to close at 14.50 percent compared to 19.75 percent on the previous day.

PREVIOUS FGN BOND PMA AUCTION RESULT

FGN bonds secondary market closed on a mildly positive note today, as the average bond yield across the curve cleared lower by 5 bps to close at 9.66 percent from 9.71 percent on the previous day. Average yield across the short tenor of the curve decreased by 7 bps, while the average  yield across the medium tenor of the curve increased by 4 bps. However, the average yield across the long tenor of the curve remained unchanged.

The 27-APR-2023 maturity bond was very active  with a decline in yield of 25 bps, while the 17-MAR-2027 maturity bond was the worst performer with an increase in yield of 17 bps. The secondary bond market is likely to witness an uptick in trading activities as the expected bond coupon inflows might generate higher demand later in the week.

 

FGN BOND MARKET YIELD CURVE

FGN SECONDARY MARKET BENCHMARK BOND

MARKET NEWS HEADLINES

Wall Street dips in expectation of inflation report

Investors are waiting for clues from the upcoming corporate earnings season and a crucial inflation report later this week, and so, the s&p 500 and dow jones industrial average ended lower on monday.stocks have been selling off after recent strong gains fueled by a pullback in the benchmark 10-year bond yield from 14-month highs. analysts project that investors took profit out of the market on monday, leading to the dip in stocks.nasdaq took a hit of (-0.36%) during the session. the s&p 500 decreased by (-0.020%) while dow made a loss of 0.16%.

 

ZENITH BANK RETAINS POSITION AS NUMBER 1 TIER-1 BANK IN NIGERIA

Zenith Bank Plc has retained its position as the number one bank in Nigeria by Tier-1 capital in the 2021 Top 1,000 World Banks ranking published by the Banker Magazine.This was disclosed in a statement by the Group Managing Director/Chief Executive of the bank, Mr Ebenezer Onyeagwu, on Wednesday in Lagos, according to the News Agency of Nigeria.Mr Onyeagwu said the report was published in the July edition of the Banker Magazine of Financial Times Group, based on the 2020 year-end Tier-1 capital of banks globally.This ranking is a demonstration of our resilience and doggedness as an institution given the very challenging macroeconomic environment brought about by the COVID-19 pandemic, which had a significant deleterious impact on businesses globally.

It is also an affirmation of our commitment to delighting and creating value for our customers through a broad range of superior product offerings, best-in-class service, and top-of-the-range technology.

NIGERIA TO BECOME OIL BUNKERING HUB IN AFRICA
The Department of Petroleum Resources (DPR) has said that Nigeria has moved to become the Marine Petroleum Products Retail Operations (MAPPRO) hub in Africa as it has improved the MAPPRO popularly referred to as “Bunkering”.

The initiative by the Federal Government follows the importance of the petroleum and maritime sectors to the Nigerian economy and the need to continuously synergize their operations.This disclosure was made by DPR’s Director/Chief Executive Officer, Engr. Sarki Auwalu, while delivering the lead paper at the Fourth Valuechain Lecture and Awards on Monday in Abuja.

BEST PERFORMING EURO BOND FUNDS IN H1 2021
According to the analysis, the first 7 best performing mutual funds in the second quarter of 2021, (on a year-to-date basis) is made up of 4 Euro Bond Funds. Here is a list of the 7 best performing mutual funds for H1 2021.

7th Best Performing Fund:

Name of Fund:  FBN Nigeria Eurobond USD Fund (Retails)

YTD Performance %:  6.95%

YTD Gain per unit:  N3429.0

6th Best Performing Fund:

Name of Fund:  FBN Nigeria Eurobond USD Fund (Institutional)

YTD Performance %:  6.96%

YTD Gain per unit:  N3430.47

5th Best Performing Fund:

Name of Fund: Legacy USD Bond Fund

YTD Performance %:  7.95%

YTD Gain per unit:  N30.16

4th Best Performing Fund:

Name of Fund:  Zenith Equity Fund

YTD Performance %:  8%

YTD Gain per unit:  N0.96

3rd Best Performing Fund:

Name of Fund:  Vantage Dollar Fund

YTD Performance %:  9.02%

YTD Gain per unit:  N45.37

2nd Best Performing Fund:

Name of Fund:  ARM Ethical Fund

YTD Performance %:  10.40%

YTD Gain per unit:  N3.69

Best Performing Fund (1st):

Name of Fund:  Alpha ETF

YTD Performance %:  18.31%

YTD Gain per unit:  N18.31

DISCLAIMER: This publication is strictly for information purposes only for Zock capital and invest  LLC  and its employees take no responsibility or liability as to the accuracy and completeness of the information.
For further ./enquiries/information on this publication, please contact Research and Economic Intelligence .

Analyst: By: Judith Idialu: Zock capital and Investment LLC,
0805 598 0595

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