Views: Visits 7 By Babajide Komolafe Cost of funds in the interbank money market rose to 19.2 per cent last week, defying N515 billion inflow during the week. The inflow comprised N110 billion from matured secondary market (Open Market Operations, OMO) treasury bills, N14.91 billion from FGN Bond Coupon payment and statutory allocation of N390 billion from Federation Accounts Allocation Committee (FAAC) to the state. READ ALSOConfession video of ESN member: Nnamdi Kanu is 419, he should lead from Nigeria The impact of the inflow was, however, cancelled by outflow comprising N87.95 billion through Nigerian Treasury Bills (NTB) issuance, N41 billion through OMO bills auction, debit for Cash Reserve Ratio (CRR) and foreign exchange auction.
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Niger inaugurates committee to curb illicit drug use among youths The Niger government has set up a 16-member committee to look into the menace of drug use among youths in the state.Advertisement Sani Bello, Niger governor, inaugurated the committee on.
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‘I won’t be blackmailed’ el-Rufai defiant as bandits threaten to kill abducted students The Kaduna state government says it will not succumb to emotional blackmail regarding the fate of the abducted students of Federal College of Forestry Mechanization.Advertisement This is even as parents.
Investors lose N1.4trn as rising yields in FI takes toll on equities market Investors lose N1.4trn as rising yields in FI takes toll on equities market
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The Nigerian equities market, having recorded four consecutive weekly losses, ended the month of February bearish with the All Share Index (ASI) at -6.16 per cent as investors eye the continuous uptick of yields in the fixed income market.
In the month of February, investors lost N1.36 trillion as the market capitalisation of the local bourse closed the month at N20.824 trillion as against an opening of N22.187 trillion.
Again, the Nigerian Treasury Bills (NTB) auction results wherein stop rates rose by an average of 254 basis points to 3.67 per cent from 2.33 per cent at the last auction, thereby weighing on investors sentiment at the Nigerian Stock Exchange (NSE).
Obinna Chima
Analysts at CSL Stockbrokers Limited have predicted an eight per cent loan growth for the Nigerian banking sector in 2021.
The Lagos-based firm stated this in a report on its 2021 outlook titled: “Surviving Amidst Uncertainties.”
The firm pointed out that at the onset of the pandemic and the subsequent impact on the macro economic environment resulted in minimal loan growth for the banks.
It revealed that as of the first nine months of 2020, the banks under its coverage reported an average loan growth of 9.6 per cent, adding that banks were expanding their loan books to meet the Central Bank of Nigeria’s (CBN) minimum loan-to-deposit (LDR) ration.
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FGN Bonds Update: Bearish sentiments as Average Yield Expands by 36bps W-o-W to 7.09%; FGN Bond PMA Held on Wednesday
The FGN Bond secondary market had a bearish run last week as market players took advantage of the first monthly auction for the year that held on Wednesday. Consequently, average yield across the curve expanded by 36bps W-o-W to settle at 7.09% from 6.73% the previous week.
Across tenors, yields on the medium and long term instruments advanced by 42bps and 62bps W-o-W respectively while the short tenor declined by 5bps. The medium and long tenors had the most buying interests with