FeaturedMarket News

Fixed Income Market Update

 

MARKET NEWSLETTER AS AT 29TH JUNE 2021

MACRO ECONOMIC INDICES FOREIGN EXCHANGE MARKET
 Inflation 18.12% Tenor Current Rate ($/N) Previous  Rate ($/N)
MPR 11.50% CBN Official 410.16 410.16
Brent Crude $75.08bp CBN SMIS Window 380.69 380.69
External Reserves $27.29bn I&E FX Window 410.83 411.28
Foreign Exchange N410.16 Parallel Market (transfer) 502 N500.00

Foreign exchange: At the I&E FX market, Naira appreciated by 0.11 percent as the dollar was quoted at ₦410.83 as against the last close of ₦411.28. Most participants maintained bids between ₦400.00 and ₦420.90 per dollar  .

Daily Forex Rates (Dollar / Pounds / Euro Exchange Rates)

Naira/Dollar (NGN/USD) Naira/Pound (NGN/GBP) Naira/Euro (NGN/EUR)
Date Buy/Sell Buy/Sell Buy/Sell
June 29th, 2021 498 / 502 705 / 710 590 / 600
June 28th, 2021 496 / 500 705 / 710 595 / 600
June 25th, 2021 495 / 500 705 / 710 590 / 595
June 24th, 2021 495 / 500 705 / 710 585 / 592

 TREASURY BILLS

PRIMARY MARKET AUCTION  (PMA) PREVIOUS RESULT.

Tenor 09/06/2021  27/5/2021
current Stop rate Previous stop rate
91 2.50% 2.50%
182 3.50% 3.50%
364 9.64% 9.65%

The  Treasury Bills secondary market  recorded a sell pressure across some tradable maturities especially on 9th Jun 2022 maturity. Average yield  closed  at 6.58 %  as against 6.57% previous day . Market experienced a  flat yield curve across short and mid maturities to  close  at 4.35 % .

This Wednesday, the Central Bank of Nigeria  is slated to conduct Treasury  Bills Primary Market Auction and offer  ₦81.74 billion  for  91 day (₦2.88 billion), 182 day (₦20.00 billion), and 364 day (₦58.86 billion) tenors. We expect mild demand levels as investors anticipate slightly improved yields.
We expect the treasury Bills Secondary market participants to be relatively quiet as they position  their respective portfolios for the PMA. Investors are thus advised to remain cautious and position in attractive yields across all tenors.

On the flip side, the OMO bills market experienced the same sell off across long maturities  . The 10-Aug-21 maturity bill laggard the most with a drop in yield  of  6bps.While  the average yields across short-term and mid maturities closed flat at 9.31 % and 9.72 % respectively.

MONEY MARKET
The Overnight rate decreased by 2.00 % to close at 17.25 % as against the last close of 19.25 percent, and the Open Buy Back rate decreased by 1.75 % to close at 16.75 % compared to 18.50% on the previous day.

FGN BOND MARKET

PREVIOUS FGN BOND PMA AUCTION RESULT

Auction Date 10 YR 15YR 25YR 30YR
23-Jun-21 12.74% 13.50% 0 13.70%
19-May-21 13.10% 14.00% 0 14.20%
21-Apr-21 12.25% 13.34% 13.85% 0
24-Mar-21 10.50% 11.50% 12.00% 0

FGN BOND MARKET YIELD CURVE

The FGN bond secondary market saw buying interest from investors across all tenors on the back of improved yield  across the curve cleared lower by 3 bps to close at 9.78 %. Average yields across short tenor, medium tenor, and long tenor of the curve declined by 2 bps, 4 bps, and 11 bps, respectively.    Specifically, the 14-MAR-2024 maturity bond saw the most buying interest as the average yield dip  of 61 bps, while the FGNSB 10-JUL-2022 bond was the worst performer with an increase in yield of 24 bps. Going into the week, the secondary bond market may witness a bullish trend factoring the current market levels.

FGN BENCHMARK BOND

RESERVES DIP TO 44-MONTH LOW AS NAIRA WEAKENS
With an expected increase in oil inflows on the back of rising crude prices and inflows for the federal government foreign borrowings, traders at the official market said they expect liquidity to improve while traders at the parallel market remain pessimistic about a rising naira. Meanwhile liquidity crunch hit the money market last week as debits for cash reserves requirement, FGN bond auctions as well as foreign exchange sales saw overnight rates expand by 375 basis points to 23 per cent.This is despite an inflow of N378.86 billion inflow from Federation Account Allocation Committee (FAAC) disbursement and Open Market Operations (OMO) maturities. There was a N363.86 billion inflow form FAAC and N15 billion from OMO maturities last week. System liquidity to remain tight and rates moving upwards in the absence of any significant inflows to the system.

FOREIGN TRANSACTIONS AT NGX DROP $49.3M AS FX LIQUIDITY CONSTRAINTS LINGER
Total foreign transactions on the Nigerian Exchange Limited (NGX) dropped 27.59 per cent from N28.02 billion (about $68.31 million) to N20.29 billion (about $49.33 million) between April 2021 and May 2021.

This was even as the value of purchase transactions (FPI inflow) on equities fell by 53.28 per cent in the month under review. Data obtained from the NGX Domestic and Foreign Portfolio Investment (FPI) flows report for May 2021 revealed that FPI inflows dropped further to N13.01 billion from N18.02 billion recorded in April 2021, resulting in a 53.28 per cent decrease, while outflows fell to N7.28 billion from N9.82 billion recorded in the previous month.

NDIC BEGINS PAYMENT OF DIVIDENDS TO DEPOSITORS OF LIQUIDATED BANKS
The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to commence payment of liquidation dividends to uninsured depositors, creditors and shareholders of additional 14 banks in liquidation.Director Communication and Public Affairs Department of NDIC, Bashir Nuhu, in a statement, explained while stakeholders of eight closed banks are to receive their first round of liquidation dividend payments, those of the other six are to be paid additional sums due to them as part of their liquidation dividends. The statement listed the banks as City Express Bank, All States Trust Bank, Allied Bank, Commerce Bank, North South Bank, Cooperative and Commerce Bank and Nigeria Merchant Bank.
Others are Hilltop MFB, Olomoyoyo MFB, Evo MFB, Ngwegwe MFB, Bekwarra MFB, Argungu MFB and Edet MFB.

JAIZ BANK PAYS N883.9M DIVIDEND TO SHAREHOLDERS
Shareholders of Jaiz Bank Plc have approved a total dividend of N883.9 million, representing 3 kobo per share for the 2020 financial year at the 9th annual general meeting of the bank. Speaking at the meeting in Abuja, chairman of the bank Umaru Abdul Mutallab, said the bank worked assiduously towards ensuring that the dividend payment is made to shareholders to enable them meet their aspirations.

He added that despite the challenging economic environment that was aggravated by COVID-19 pandemic, gross earnings rose by 33 per cent from N14.70 billion in 2019 to N19.60 billion in 2020.

U.K. ECONOMY GREW MORE THAN ESTIMATED BEFORE PANDEMIC STRUCK
The U.K. economy grew more strongly than previously thought in the year prior to the coronavirus pandemic, data published Monday show.Gross domestic product expanded 1.7% in 2019 instead of the previously estimated 1.4%, the Office for National Statistics.

DISCLAIMER: This publication is strictly for information purposes only for Zock capital 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 : Judith Idialu 

Zock Capital & Investment

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.

FeaturedMarket News

Fixed Income Market Update

 

MARKET NEWSLETTER AS AT 29TH JUNE 2021

MACRO ECONOMIC INDICES FOREIGN EXCHANGE MARKET
 Inflation 18.12% Tenor Current Rate ($/N) Previous  Rate ($/N)
MPR 11.50% CBN Official 410.16 410.16
Brent Crude $75.08bp CBN SMIS Window 380.69 380.69
External Reserves $27.29bn I&E FX Window 410.83 411.28
Foreign Exchange N410.16 Parallel Market (transfer) 502 N500.00

Foreign exchange: At the I&E FX market, Naira appreciated by 0.11 percent as the dollar was quoted at ₦410.83 as against the last close of ₦411.28. Most participants maintained bids between ₦400.00 and ₦420.90 per dollar  .

Daily Forex Rates (Dollar / Pounds / Euro Exchange Rates)

Naira/Dollar (NGN/USD) Naira/Pound (NGN/GBP) Naira/Euro (NGN/EUR)
Date Buy/Sell Buy/Sell Buy/Sell
June 29th, 2021 498 / 502 705 / 710 590 / 600
June 28th, 2021 496 / 500 705 / 710 595 / 600
June 25th, 2021 495 / 500 705 / 710 590 / 595
June 24th, 2021 495 / 500 705 / 710 585 / 592

 TREASURY BILLS

PRIMARY MARKET AUCTION  (PMA) PREVIOUS RESULT.

Tenor 09/06/2021  27/5/2021
current Stop rate Previous stop rate
91 2.50% 2.50%
182 3.50% 3.50%
364 9.64% 9.65%

The  Treasury Bills secondary market  recorded a sell pressure across some tradable maturities especially on 9th Jun 2022 maturity. Average yield  closed  at 6.58 %  as against 6.57% previous day . Market experienced a  flat yield curve across short and mid maturities to  close  at 4.35 % .

This Wednesday, the Central Bank of Nigeria  is slated to conduct Treasury  Bills Primary Market Auction and offer  ₦81.74 billion  for  91 day (₦2.88 billion), 182 day (₦20.00 billion), and 364 day (₦58.86 billion) tenors. We expect mild demand levels as investors anticipate slightly improved yields.
We expect the treasury Bills Secondary market participants to be relatively quiet as they position  their respective portfolios for the PMA. Investors are thus advised to remain cautious and position in attractive yields across all tenors.

On the flip side, the OMO bills market experienced the same sell off across long maturities  . The 10-Aug-21 maturity bill laggard the most with a drop in yield  of  6bps.While  the average yields across short-term and mid maturities closed flat at 9.31 % and 9.72 % respectively.

MONEY MARKET
The Overnight rate decreased by 2.00 % to close at 17.25 % as against the last close of 19.25 percent, and the Open Buy Back rate decreased by 1.75 % to close at 16.75 % compared to 18.50% on the previous day.

FGN BOND MARKET

PREVIOUS FGN BOND PMA AUCTION RESULT

Auction Date 10 YR 15YR 25YR 30YR
23-Jun-21 12.74% 13.50% 0 13.70%
19-May-21 13.10% 14.00% 0 14.20%
21-Apr-21 12.25% 13.34% 13.85% 0
24-Mar-21 10.50% 11.50% 12.00% 0

FGN BOND MARKET YIELD CURVE

The FGN bond secondary market saw buying interest from investors across all tenors on the back of improved yield  across the curve cleared lower by 3 bps to close at 9.78 %. Average yields across short tenor, medium tenor, and long tenor of the curve declined by 2 bps, 4 bps, and 11 bps, respectively.    Specifically, the 14-MAR-2024 maturity bond saw the most buying interest as the average yield dip  of 61 bps, while the FGNSB 10-JUL-2022 bond was the worst performer with an increase in yield of 24 bps. Going into the week, the secondary bond market may witness a bullish trend factoring the current market levels.

FGN BENCHMARK BOND

RESERVES DIP TO 44-MONTH LOW AS NAIRA WEAKENS
With an expected increase in oil inflows on the back of rising crude prices and inflows for the federal government foreign borrowings, traders at the official market said they expect liquidity to improve while traders at the parallel market remain pessimistic about a rising naira. Meanwhile liquidity crunch hit the money market last week as debits for cash reserves requirement, FGN bond auctions as well as foreign exchange sales saw overnight rates expand by 375 basis points to 23 per cent.This is despite an inflow of N378.86 billion inflow from Federation Account Allocation Committee (FAAC) disbursement and Open Market Operations (OMO) maturities. There was a N363.86 billion inflow form FAAC and N15 billion from OMO maturities last week. System liquidity to remain tight and rates moving upwards in the absence of any significant inflows to the system.

FOREIGN TRANSACTIONS AT NGX DROP $49.3M AS FX LIQUIDITY CONSTRAINTS LINGER
Total foreign transactions on the Nigerian Exchange Limited (NGX) dropped 27.59 per cent from N28.02 billion (about $68.31 million) to N20.29 billion (about $49.33 million) between April 2021 and May 2021.

This was even as the value of purchase transactions (FPI inflow) on equities fell by 53.28 per cent in the month under review. Data obtained from the NGX Domestic and Foreign Portfolio Investment (FPI) flows report for May 2021 revealed that FPI inflows dropped further to N13.01 billion from N18.02 billion recorded in April 2021, resulting in a 53.28 per cent decrease, while outflows fell to N7.28 billion from N9.82 billion recorded in the previous month.

NDIC BEGINS PAYMENT OF DIVIDENDS TO DEPOSITORS OF LIQUIDATED BANKS
The Nigeria Deposit Insurance Corporation (NDIC) has announced plans to commence payment of liquidation dividends to uninsured depositors, creditors and shareholders of additional 14 banks in liquidation.Director Communication and Public Affairs Department of NDIC, Bashir Nuhu, in a statement, explained while stakeholders of eight closed banks are to receive their first round of liquidation dividend payments, those of the other six are to be paid additional sums due to them as part of their liquidation dividends. The statement listed the banks as City Express Bank, All States Trust Bank, Allied Bank, Commerce Bank, North South Bank, Cooperative and Commerce Bank and Nigeria Merchant Bank.
Others are Hilltop MFB, Olomoyoyo MFB, Evo MFB, Ngwegwe MFB, Bekwarra MFB, Argungu MFB and Edet MFB.

JAIZ BANK PAYS N883.9M DIVIDEND TO SHAREHOLDERS
Shareholders of Jaiz Bank Plc have approved a total dividend of N883.9 million, representing 3 kobo per share for the 2020 financial year at the 9th annual general meeting of the bank. Speaking at the meeting in Abuja, chairman of the bank Umaru Abdul Mutallab, said the bank worked assiduously towards ensuring that the dividend payment is made to shareholders to enable them meet their aspirations.

He added that despite the challenging economic environment that was aggravated by COVID-19 pandemic, gross earnings rose by 33 per cent from N14.70 billion in 2019 to N19.60 billion in 2020.

U.K. ECONOMY GREW MORE THAN ESTIMATED BEFORE PANDEMIC STRUCK
The U.K. economy grew more strongly than previously thought in the year prior to the coronavirus pandemic, data published Monday show.Gross domestic product expanded 1.7% in 2019 instead of the previously estimated 1.4%, the Office for National Statistics.

DISCLAIMER: This publication is strictly for information purposes only for Zock capital 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 : Judith Idialu 

Zock Capital & Investment

Comment here

This site uses Akismet to reduce spam. Learn how your comment data is processed.