Daily Capital Market Roundup, 1st June 2021

Dear Valued Investor,

The Equity Market opens the new month on a bearish note as the All-Share Index declined marginally by 0.06% to close at 38,414.37 points. Market capitalisation shed 0.06% to close at N20.0 trillion. Today’s performance expands the year-to-date loss of the market to -4.61%.
Despite the loss, positive sentiment dominated today’s session. We saw 18 gainers as against 17 losers. Trading activities improved significantly as volume and value traded grew by 36.16% and 24.17% respectively.
Money Market: For the second day, Open Buy Back and the Overnight (O/N) rates both declined to close at 12% and 12.67% respectively, as against yesterday’s 12.50% and 13.00% respectively. System liquidity was in deficit of N448 billion at close of business on Friday, currently, it’s in surplus of N256 billion. One of the factors responsible for the significant turnaround is the reduction in REPO activities.
Bonds & Bills: average yields across benchmark bonds under our watch compressed further by 3bps to close at 13.25% compared to 13.28% recorded yesterday. Relatively, activities picked up at the NT Bills market on the back of improved system liquidity. Few trades were executed on long-dated bills as rates closed flat.
Fx: Today, Naira closed flat in the I&E Market at N412. It declined to N498 at Parallel Market from N495 yesterday.
Economy: Eurozone manufacturing activity expanded at a record pace in May, according to a survey on Tuesday which suggested growth would have been even faster without supply bottlenecks that have led to an unprecedented rise in input costs. Reuters
Covid-19: The World Health Organization (WHO) said on Tuesday it has approved a Covid-19 vaccine made by drugmaker Sinovac Biotech for emergency use listing, paving the way for a second Chinese shot to be used in poor countries. CNBC
Oil: OPEC+ stuck to its plan to hike oil output in July, but Saudi Arabia’s energy minister kept the market guessing as to whether the group will add more supply later this year to keep pace with the accelerating global recovery. Bloomberg
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