Holiday Blues Dampen Trading Activities for Last Trading Session

Proshare

Friday, January 1, 2021 / 11:46 AM / By Zedcrest Capital / Header Image Credit: The Nigerian Stock Exchange


Proshare Nigeria Pvt. Ltd.


FGN Bonds

The Bond Market closed the year on a muted note, dampened by New Year celebrations. We saw interest in the 2049s paper, which was offered around 8.35% at the early hours but eventually printed around 8.50% levels. We also saw a few trades on the 2027s maturity, which traded around 6.30% levels. By and large, yields closed flat D/D across the Benchmark bond curve.

 

We expect a cautious start to the New Year once trading resumes as investors weigh in on the different investment options available.

 

Benchmark FGN Bonds

Description

Bid (%)

Offer (%)

Day Change (%)

 

n16.39 27-Jan-22

3.78

0.35

0.00

 

12.75 27-Apr-23

5.29

2.64

0.00

 

14.20 14-Mar-24

6.45

2.95

0.00

 

13.53 23-Mar-25

5.98

2.96

0.00

 

12.50 22-Jan-26

7.01

4.98

0.00

 

16.29 17-Mar-27

7.81

5.28

0.00

 

13.98 23-Feb-28

8.48

5.30

0.00

 

14.55 26-Apr-29

8.43

7.00

0.00

 

12.15 18-Jul-34

9.15

8.00

0.00

 

12.50 27-Mar-35

9.30

8.03

0.00

 

12.40 18-Mar-36

9.30

8.03

0.00

 

16.2499 18-Apr-37

9.30

8.10

0.00

 

9.80 24-Jul-45

10.00

7.20

0.00

 

14.80 26-Apr-49

10.00

8.30

0.00

 

12.98 27-Mar-50

10.00

8.30

0.00

 

 

Treasury Bills

It was a sluggish trading day in the Treasury Bills market, as market players wrapped up activities to close out the year.


We anticipate significant activity for next week, triggered by buoyant system liquidity. Albeit most dealers would most likely restrict their investments within the short- and medium-term bills.

 

Benchmark OMO Bills

Description

Bid (%)

Offer (%)

Day Change (%)

NGOMOB 0 01/05/21

4.00

0.15

0.00

NGOMOB 0 02/02/21

4.00

0.20

0.00

NGOMOB 0 03/02/21

4.00

0.20

0.00

NGOMOB 0 05/11/21

4.50

0.30

0.00

NGOMOB 0 06/08/21

4.50

0.30

0.00

NGOMOB 0 08/10/21

5.00

0.35

0.00

NGOMOB 0 09/07/21

5.00

0.50

0.00

NGOMOB 0 10/19/21

5.00

0.50

0.00

 

 

Benchmark NTBills

Description

Bid (%)

Offer (%)

Day Change (%)

NIGTB 0 12/31/20

4.00

0.15

0.00

NIGTB 0 01/14/21

4.00

0.20

0.00

NIGTB 0 02/11/21

4.00

0.30

0.00

NIGTB 0 03/11/21

4.50

0.30

0.00

NIGTB 0 04/29/21

4.50

0.30

0.00

NIGTB 0 05/13/21

4.50

0.35

0.00

NIGTB 0 06/10/21

4.50

0.35

0.00

NIGTB 0 07/01/21

5.00

0.35

0.00

NIGTB 0 08/26/21

5.00

0.50

0.00

NIGTB 0 09/09/21

5.00

0.65

0.00

NIGTB 0 10/14/21

4.00

0.15

0.00


Proshare Nigeria Pvt. Ltd. 


Money Markets

Liquidity in the interbank market opened with over N1trillion causing money market rates to remain within the single-digit levels on the last day of the year. OBB and OVN rates increased slightly by c.21bps to close at 0.50% and 0.88% respectively.

 

We anticipate rates to start the New Year in the single-digit territory supported by a buoyant system liquidity.

 

Money Market Rates

 

Current (%)

Previous (%)

Open Buy Back (OBB)

0.50

0.43

Overnight (O/N)

0.88

0.58

 

 

FX Market

We witnessed a significant movement at the IEFX space in rates depreciating by N16.25k from yesterday's closing. This movement was triggered by the Apex bank's FX intervention sale, which settled at N410/$1. All other market segments remained unchanged, closing the year on a very passive note.

 

 

FX Market

Current (N/$)

Previous (N/$)

CBN Spot

379.00

379.00

CBN SMIS

380.69

380.69

I&E FX Window

410.25

394.00

Cash Market

464.00

464.00

Transfer Market

484.00

484.00

 

Eurobonds

The NIGERIA Sovereign and NIGERIA Corps tickers had a grim trading session, with most market participants' closed shop for the year. Yields remained unchanged across the sovereign yield curve, and most tracked corporate papers to close. out the year.

 

 Proshare Nigeria Pvt. Ltd. 



Proshare Nigeria Pvt. Ltd. 



Related News


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3.   NT-Bills Market Sustains Tepid Performance as Average Yield Dips Marginally by -1bp WoW to 0.39%

4.  The Bears Reigned Unhinged in the Bond Market, Supported by Relentless Supply from local Investors

5.      The Apex Bank Slowed Down in the FX Sales at the IEFX Window

6.      Fixed Income Yield Continue to Weaken as Market Appetite Wither

7.      A Rather Drab Day in The Fixed Income Space

8.     Flat Performance in NT-Bills Secondary Market as Average Yield Hovers Around 0.4%

 

Proshare Nigeria Pvt. Ltd.

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