“News Update:
FMDQ OTC Securities Exchange has launched an Investor Protection Fund, IPF, to boost and sustain investors’ confidence in the Nigerian capital market. Following the establish- ment, Mrs. Titi Helen Lawani, representing the Pension Fund Operators Association of Nigeria, PenOp, was appointed the Chairperson of Board of Trustees, BoT, while Ms. Tokunbo Ajayi, representing the Association of Corporate Trustees emerged the Vice Chairperson of the Fund. Vanguard”
“Bearish sentiments dominated trades in the FGN Bond market today with the 2021 (+12bps) and 2027 (+10bps) maturities being the most hit. The bearish trend in the FGN Bond market has per- sisted since the resumption of 2-WQ trading in the market on the 3rd of August leading to an aggregate avg. yield increase of +20bps in the last four trading days (3rd – 8th August). We expect selling pressures to begin to wane with slight retracements expected on the longer duration bonds currently trading at 16.50% levels.
The T-bills Market also traded on a bearish note with average yields rising by +12bps due to the tight liquidity condition in the money market coming from the CBN’s OMO and FX sales yester- day. Net Market liquidity is estimated at N118billion short as at close of business today. The OBB and OVN rates, however re- mained stable to close at 25% and 26.33%, despite the tight liquid- ity in the market. We expect rates to remain stable at these levels barring any OMO T-bills sales tomorrow by the CBN .”
| ECONOMIC INDICATORS | |
| Inflation (YoY) | 16.10% |
| Exchange Rate ($) | N305.50 |
| MPR | 14.00% |
| Foreign Reserves | $30.93Bn |
| Brent Crude | $52.12 |
| FGN Bonds | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 16.00 29-Jun-19 | 16.89 | 16.82 | 0.05 | |||
| 15.54 13-Feb-20 | 16.62 | 16.55 | (0.01) | |||
| 14.50 15-Jul-21 | 16.63 | 16.56 | 0.12 | |||
| 16.39 27-Jan-22 | 16.46 | 16.39 | 0.08 | |||
| 14.20 14-Mar-24 | 16.45 | 16.38 | 0.02 | |||
| 12.50 22-Jan-26 | 16.47 | 16.40 | 0.00 | |||
| 16.29 17-Mar-27 | 16.54 | 16.47 | 0.10 | |||
| 12.15 18-Jul-34 | 16.49 | 16.42 | 0.05 | |||
| 12.40 18-Mar-36 | 16.49 | 16.42 | 0.07 | |||
| 16.25 18-Apr-37 | 16.55 | 16.48 | (0.01) | |||
| Treasury Bills | ||||||
| Description | Bid (%) | Offer (%) | Day Change (%) | |||
| 2-Nov-17 | 19.00 | 18.75 | 0.55 | |||
| 7-Dec-17 | 18.70 | 18.45 | 0.25 | |||
| 4-Jan-18 | 18.85 | 18.60 | 0.10 | |||
| 1-Feb-18 | 18.80 | 18.55 | 0.30 | |||
| 1-Mar-18 | 18.75 | 18.50 | 0.50 | |||
| 5-Apr-18 | 18.45 | 18.20 | (0.05) | |||
| 3-May-18 | 18.45 | 18.20 | 0.00 | |||
| 14-Jun-18 | 18.45 | 18.20 | 0.00 | |||
| 5-Jul-18 | 18.55 | 18.30 | 0.00 | |||
| Money Market Rates | ||||||||
| Current (%) | Previous (%) | |||||||
| Open Buy Back (OBB) | 25.00 | 26.67 | ||||||
| Overnight (O/N) | 26.33 | 27.50 | ||||||
| FX Market | ||||||||
| Current (N/$) | Previous ( N/$) | |||||||
| Interbank | 305.50 | 305.50 | ||||||
| CBN SMIS | 320.00 | 320.00 | ||||||
| I&E FX Window | 368.17 | 367.38 | ||||||
| Parallel Market | 364.00 | 365.00 | ||||||
| Primary Market Auction Results | ||||||||
| NTB – 2 August 2017 | ||||||||
| Tenor | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) | ||||
| 91 days | 13.42 | 29.14 | 26.18 | 23.06 | ||||
| 182 days | 17.40 | 80.00 | 69.75 | 69.57 | ||||
| 364 days | 18.53 | 120.00 | 211.05 | 136.52 | ||||
| FGN Bonds – 12 July 2017 | ||||||||
| Tenor | Rate (%) | Offer (N’bn) | Sub (N’bn) | Sale (N’bn) | ||||
| Jun-21 | 16.2400 | 35.00 | 9.10 | 3.90 | ||||
| Mar-27 | 16.2500 | 50.00 | 55.31 | 47.01 | ||||
| Apr-37 | 16.2514 | 50.00 | 64.75 | 55.05 | ||||
| OMO – 7 August 2017 | ||||||||
| Tenor | Rate (%) | Offer (NBn) | Sub (N’bn) | Sale (N’bn) | ||||
| 185 day | 17.95 | 10.00 | 0.12 | 0.12 | ||||
| 332 day | 18.55 | 50.00 | 34.29 | 34.29 | ||||
| Eurobonds | |||
| Issuer | Description | Yield (%) | Day Change (%) |
| FGN | 6.38 12-Jul-23 | 5.47 | 0.00 |
| FGN | 7.875 16-Feb-32 | 6.71 | 0.01 |
| First Bank | 6.488 23-Jul-21 | 10.56 | (0.07) |
| Eco bank | 8.75 14-Aug-21 | 11.56 | (0.03) |
| Access Bank | 10.50 19-Oct-21 | 8.29 | (0.04) |
| Zenith Bank | 7.375 30-May-22 | 7.53 | (0.12) |
| UBA | 7.75 8-Jun-22 | 8.17 | 0.01 |
Sources: FMDQ, CBN, Bloomberg, Rexel BDC, Zedcrest research
