Daily Market Roundup, 2nd June 2021

Dear Valued Investor,

Buoyed by gains to Dangote Cement and Zenith Bank, the Bulls defied the lull in the Equity Market to lift the All-Share Index up with a gain of 0.18%. Today’s gain abates the year-to-date loss of the market to -4.44%.
We saw significant cross deals in the shares of SEPLAT – 400,000 units at N680, DANGOTE CEMENT – 105,000 units at N215.50; outside crosses, the Market was largely quiet.
Money Market: Today, system liquidity dropped to N147.30b from N391.05b on Tuesday. The decline was largely driven by increased activity in the lending window of the CBN. Consequently, the open buy-back and overnight rates jumped to 14.33% and 14.83% respectively (Tue: 12%-OBB, 12.67%-OVN).
Fx: The Naira appreciated at the I&E Market to close at N411.06 while It closed flat at N498 in the Parallel Market.
Bonds & Bills: average yields across benchmark bonds under our watch compressed further by 6bps to close at 13.19% compared to 13.25% recorded yesterday. The moderation in yields was driven by interest at the mid-end of the bond curve – 2030 and 2034 yields compressed by 27 and 34 bps respectively.
We saw some bullish pressure on the long-end of the OMO benchmark curve, notably Mar-22 maturity bill, resulting in a 3bps contraction in yield to close at 9.28%.
Oil: U.S. benchmark crude hit a two-and-a-half year high this week and traders see prices grinding even higher with a revival of the 2015 Iran nuclear deal still likely months away and real-time data confirming a summer demand rebound underway in some countries. U.S. gasoline demand hit the highest since the pandemic began last week, according to Descartes Labs, while traffic on U.K. roads was higher than pre-pandemic levels for the first time. Bloomberg
Africa: Recession and violence among COVID side effects in Africa, report finds. Reuters
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