June 5, 2018
By InvestAdvocate
Lagos (INVESTADVOCATE)-The naira on Tuesday appreciated by 0.09 percent to N360.78 in the Investors and Exporters Window (IEW) and climbed up 0.28 percent to N362.78 in the parallel market, according to Cordros daily market update.
“That was amidst the announced approval by the Central Bank of Nigeria (CBN), of the increased trading margin for Bureau De Change operators, who will now purchase dollars from the apex bank at N357 (previously N360) and sell at N360 (previously N362),” the Cordros report added.
The update says total turnover in the IEW surged 144.06 percent to $592.31 million, traded within the N320-N363/USD band (previously N340-N363.50/USD).
On the fixed income and money market update, Cordros reports the overnight lending rate softened by 58 bps to 4.00 percent from 4.58 percent in the previous session as market liquidity remained buoyant.
While the Nigerian Treasury Bills (NTB) market traded on a bullish note, benefiting from healthy system liquidity, as average yield dropped 5 bps to 12.71 percent.
“Buy sentiment was spread across all ends (short: -10 bps; mid: -1 bp; long: -4 bps) of the curve, with yields on the 16DTM (-44 bps), 170DTM (-24 bps), and 184DTM (-18 bps) bills moderating significantly,” the report added.
The update says bullish sentiments resurfaced in the bond market, as average yield fell marginally by -2 bps to 13.25 percent.
Yields contracted across the short (-10 bps) and mid (-1 bp) ends of the curve, driven by demand for the FEB-2020 (-34 bps) and MAR-2027 (-4 bps) bonds, respectively.
“Conversely, a selloff of the JUL-2034 (+14 bps) bond led to yield expansion at the long (+5 bps) segment,” Cordros report affirmed.
