April 4, 2024/Coronation Research

Summary

• Opening market liquidity was reported at N45.32bn on Thursday (28, March ‘24). Call, overnight, and repo rates closed within a range of 7% – 28% as rates in the money market tightened.
• Last week, the average NTB yield remained unchanged to close at 17.7% w/w. Also, the average yield for OMO bills remained unchanged to close at 18.5% w/w. At the latest primary market NTB auction held last week Wednesday, the CBN offered N161.3bn, but allotted N1.2trn worth of NTBs to market participants (7.4times more than their initial offer). The stop rates were unchanged across the three tenors; 91-day: 16.24%, 182-day: 17.00%, 364-day:  21.12%.
• In the secondary market for FGN bonds, the average yield increased by +10bps to close at 19.4% w/w.
• In the Eurobond market, the average yield declined by -10bps to close at 9.4% w/w.
• Eurozone Manufacturing PMI declined marginally to 46.1 in March ’24 from 46.5 recorded in February ’24. This reading marks the twelfth consecutive decline. The decline in factory activity is largely on the back of weaker demand. The services PMI increased to 51.1 in March ’24 from 50.5 in February  ’24. Overall, composite PMI rose to 49.9 in from 49.2 in February ’24.
• The UK Manufacturing PMI increased to 50.3 in March ’24 from 47.5 recorded in February ’24. This reading marks the first expansion in manufacturing activity since July ’22. This can be partly attributed to improved growth in consumer demand. Services PMI declined marginally to 53.4 in March ’24 from 53.8 in February  ’24. Overall, composite PMI declined to 52.9 in March ’24 from 53.0 in February ’24.

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