Feb 27 (Lagos) - Yields rose in the Treasury Primary Market auction held today. The subscription on the 365 day t-bill was almost 10 times the amount offered for subscription.
These are unhealthy signs for the stock market because clearly the money is leaving the stock market and pouring into t-bills and bonds.
The dividend investor will find the stock market unattractive after seeing what he can get from t-bills and bonds. The only risk here is the foreign exchange risk and if whether the government will devalue the Naira again. It has been almost 3 years now so another devaluation is on the cards most likely later this year. Where will it stop 400, 450, 500 ? time will tell.
reporting for easykobo.com on Wednesday, Feb 27 2019 from Lagos, Nigeria