Dear Valued Investor,
Today, the bears outpaced the bulls to end the seven-day positive run of the equity market. Losses in Dangote Cement, NB and NESTLE offset gains in BUA Foods, MTNN and ZENITH. Consequently, the lead index edged lower by 0.09% to close at 43,859.30 points, while the year-to-date gain of the market weakened to close at 2.68%.
Money Market: Despite the N59.5bn OMO maturity that hit the financial system today, liquidity balance plunged into a deficit of N74.98bn to halt a six-day run of surplus close. Today’s negative close was driven by surge in demand for Repo instruments for short-term funding cover, thereby pushing interbank rates (OPR & O/N) higher by 175bps.
Demand for the short-dated maturities continued to filter into the bond market, with traders protecting their offers. As a result, yield pushed lower by 1bp to settle at 11.88% on average.
The treasury bills segment held its breath as market players maintained their position on the sidelines ahead of tomorrow’s primary market auction. Consequently, average benchmark yield for treasury bills closed flat at 4.58%.
FX Market: At the I&E window, activity levels continued to trend southwards, as daily turnover decreased by 26.03% to close at $77.61m. However, the Naira remained stable, closing the session at $/N416.50. Also, External reserves held firm at $40.5bn.