Nov 11 (Lagos) - Following yesterday's Primary Market Auction where the 364 day bill went for 14.4%, the effective yields this morning on 1 year T-Bills investments have gone north of 15.5%.
As a result of that, the stock market continued to sell off giving up another 1.26% today.
CADBURY & DANFLOUR were severely punished on their recent performance.
The 15.5% in a risk free Investment is anytime more attractive than the wealth destruction that has occurred in the stock market this year and also long term. That is where the smart money will pour with the inflation rising and Dollar strengthening.
The only reason Nigerian economy is not in another windstorm is because of the high crude oil prices. If that were to change, the economy will go for another toss because this government has failed to deliver on agriculture development promises which were made in 2015-16 when the crude oil prices were at record lows.
We hope they will not wait till the next crude oil price crash to make a real push in agriculture.
reporting for easykobo.com on Thursday, Nov 1 2018 from Lagos, Nigeria