Monday, December 18, 2017 12:19:34 AM- Nigerian Stock Exchange.

  Yields mixed at week close, Naira at 323 to 1 Dollar


March 25 (Lagos) - Despite the marginal rise in system liquidity to N341 billion (Previous: N325 billion), interbank placement rates advanced across all tenors (up 248bps on average) – with the Call rate up 600bps to 13.6% (following the tightening stance of the MPC). 

At the FX inter-bank market, the Naira depreciated 7 kobo to NGN199.05/USD after recording an intra-day high of NGN198.00/USD.

At yesterday’s T-bills PMA, the CBN sold N115billion across the 91DTM, 182DTM and 364DTM bills at effective yields of 6.09%, 8.66%, and 10.57% respectively (coming in largely in line with yesterday’s secondary market level). However, the T-bills market sustained its bearish pattern as yields rose 11bps on average. 

The most notable increases were recorded on the 56DTM (+145bps), 140DTM (+109bps), and 147DTM(+77bps) bills closing at 6.76%, 8.62%, and 8.21% respectively. The bond market however closed the week upbeat (with demand weighted across most maturities) as yields declined 19bps on average. 

Particularly, yields on the 15.10% FGN APR 2017 and 16.00% FGN JUN 2019 bonds declined 44bps and 20bps to 10.04% and 10.57% respectively.

In anticipation of the second quarter bond issuance calendar, analysts at Vetiva Capital Management Ltd in Victoria Island expect the bond market to trade cautiously. However, we foresee a mixed trading session for the T-bills market at week open as cherry picking persists amidst bearish sentiment.

In the parallel market Naira was stable at 323 against 1 USD, a worrying level for businesses and investors in the country.

reporting for on Friday, March 25 2016 from Lagos, Nigeria

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