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OTC FGN Bond Prices Fall for Most Maturities Amid Sell Pressure

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OTC FGN Bond Prices Fall for Most Maturities Amid Sell Pressure

OTC FGN Bond Prices Fall for Most Maturities Amid Sell Pressure

By Cowry Asset

In the just concluded week, FGN bond prices traded at the OTC segment depreciated for most of the maturities as the bears dominated transactions amid liquidity strain.

The 20-year, 10.00% FGN July 2030 debt, the 10-year, 16.39% FGN JAN 2022 debt and the 7-year

16.00% FGN JUN 2019 debt depreciated by N0.93, N1.94 and N0.47 respectively; their corresponding yields rose to 15.95% (from 15.72%), 16.50% (from 15.83%) and 16.07% (from 15.83%) respectively.

However, the 5-year, 15.10% FGN APR 2017 debt appreciated by N0.05; its corresponding yields fell to 14.32% (from 14.38%).

Elsewhere, FGN Eurobonds traded on the London Stock Exchange decreased in value across all the maturities amid profit taking.

The 10-year, 6.75% JAN 28, 2021 bond, the 5-year, 5.13% JUL 12, 2018 bond and the 10-year, 6.38% JUL 12, 2023 bond depreciated by USD0.02 (yield rose to 5.39%), USD0.10 (yield rose to 3.92%) and USD0.13 (yield rose to 6.04%) respectively.

This week, we anticipate bullish activity in the OTC market on the back of anticipated ease in financial system liquidity.

Source: https://cowryasset.com/

Dipo Olowookere is a journalist based in Nigeria that has passion for reporting business news stories. At his leisure time, he watches football and supports 3SC of Ibadan. Mr Olowookere can be reached via dipo.olowookere@businesspost.ng

Economy

IGP Orders Arrest, Prosecution of Sellers of Naira

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sellers of Naira

By Aduragbemi Omiyale

The Inspector General of Police (IGP), Mr Usman Alkali Baba, has directed the Deputy Inspector-General of Police in charge of the Force Criminal Investigations Department and the Assistant Inspector-General of Police in charge of the Force Intelligence Bureau to begin the arrest and prosecution of sellers of Naira, as well as the abusers.

In a statement on Friday by the spokesman of the Nigeria Police Force (NPF), Mr Olumuyiwa Adejobi, the police chief said violators would not be spared.

He said efforts would be made to enforce the Central Bank of Nigeria (CBN) Act as the country boils over the swapping of the old banknotes for new ones.

There had been a scarcity of cash in many parts of the country over the Naira redesign policy of the central bank.

There have been reports of people buying the new currency notes at exorbitant rates, triggering anger in some places.

But the statement from the police today said, “In furtherance of the federal government’s policy and drive to uphold the provisions of the CBN Act, 2007, and dignify Nigeria’s currency,” the IGP has ordered the placement of place officers and men of the department and the bureau across the nation “on high alert and to carry out the arrest, and subsequent prosecution of all individuals engaged in the sale or abuse of the Naira notes issued by the CBN.”

“The IGP has similarly charged all supervisory Assistant Inspectors-General of Police and Commissioners of Police in charge of police commands and formations to carry out full enforcement of the provisions of Sections 20 and 21 of the Central Bank of Nigeria Act, 2007, which criminalises, amongst other things, the hawking, selling or otherwise trading, spraying of, dancing or matching on the Naira notes, falsifying or counterfeiting of bank notes, refusal to accept the Naira as a means of payment, tampering with the coin or note issued by the CBN,” the statement added.

It said Mr Baba has reiterated the mandate of the police “to enforce all laws and regulations without any prejudice to the enabling Acts of other security agencies and urged all and sundry to cooperate with the NPF as it brings the long arm of the law to bear upon all violators of the provisions of the CBN Act, and other extant statutes in Nigeria, with a view to having a well-policed society in all ramifications within the country.”

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Economy

Employment Growth Quickens Amid Efforts to Deal With Workloads

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Manufacturing Activities PMI

The Nigerian private sector registered a slight loss of growth momentum in January, with output and new business rising further markedly, though at softer rates than at the end of 2022.

On a more positive note, firms raised employment at the fastest pace since June 2018 as part of efforts to complete work on time.

On the price front, rates of inflation of input costs and output prices softened in January but remained elevated.

Analysis by Stanbic IBTC Bank showed that the headline figure derived from the survey is the Purchasing Managers’ Index (PMI®).

Readings above 50.0 signal an improvement in business conditions in the previous month, while readings below 50.0 show a deterioration. The headline PMI dipped to 53.5 in January from 54.6 in December. Although still signalling a solid monthly strengthening of the private sector and the thirty-first in consecutive months, the rate of improvement was the softest since August 2022.

Business activity increased at a much slower pace at the start of the year, despite the rate of growth remaining marked. The latest rise was the weakest in five months. Demand continued to improve, but some firms reported a moderation in customer numbers.

Activity increased across each of the four broad sectors covered by the survey. The rate of expansion in new business also softened in January but remained sharp nonetheless, again reflecting higher demand from customers.

A desire to try and complete projects on time led companies to ramp up their hiring activities at the start of the year. Employment increased at a solid pace that was the fastest since June 2018.

Despite expanded staffing levels, backlogs of work increased for the first time in three months. Firms reported having been hindered by issues with machinery and power supply.

Higher workloads and positive expectations regarding the outlook for activity led companies to expand their purchasing activity sharply again, with the rate of growth unchanged from December. In turn, stocks of purchases also rose further. Efforts to secure inputs were helped by improving supplier performance.

Competition among vendors, quiet road conditions and prompt payments all contributed to a shortening of delivery times, one that was the most pronounced in four months. The rate of input cost inflation softened for the second month running in January, and was at a one-year low.

The slowdown in overall cost inflation largely reflected a softer rise in purchase prices, albeit one that was still substantial. Purchase costs increased on the back of rising fuel and raw material costs, exacerbated by currency weakness.

Meanwhile, staff costs rose at the fastest pace in 11 months as companies increased pay in line with higher living costs. Output price inflation also remained elevated as higher cost burdens were passed on to customers.

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Economy

NASD OTC Market Appreciates by 0.95%

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NASD Market capitalisation

By Adedapo Adesanya

The duo of FrieslandCampina WAMCO Nigeria Plc and Central Securities Clearing System (CSCS) Plc buoyed the NASD Over-the-Counter (OTC) Securities Exchange by 0.95 per cent on Thursday, February 2.

They lifted the market capitalisation of the bourse by N8.80 billion to settle at N940.51 billion compared with the previous day’s N931.71 billion. They also raised the NASD Unlisted Securities Index (NSI) by 6.70 points to wrap the session at 715.76 points compared with 709.06 points recorded in the previous session.

During the session, the price of FrieslandCampina went up by N3.23 to settle at N68.06 per unit, in contrast to the previous day’s N64.83 per unit, while CSCS Plc appreciated by 50 Kobo to sell at N13.50 per share compared with the preceding session’s N13 per share.

The volume of transacted stocks decreased by 4.3 per cent to 261,439 units from the 273,038 units traded in the preceding session. However, the value of shares traded went higher by 38.9 per cent to N15.7 million from N11.3 million, while the number of deals recorded an improvement, as it grew by 300 per cent to 20 deals from five deals on Tuesday.

Business Post reports that there was no price loser at the session.

Geo-Fluids finished the day as the most traded stock by volume on a year-to-date basis with 321.2 million units worth N317.2 million, UBN Property Plc stood in second place with 35.8 million units valued at N25.8 million, while FrieslandCampina Wamco Nigeria Plc was in third place with 2.4 million units valued at N159.4 million.

Geo-Fluids Plc also maintained its summit position as the most active stock by value on a year-to-date basis, with 321.2 million units sold for N317.2 million, FrieslandCampina WAMCO Group Plc was in second place with 2.4 million units valued at N159.4 million, while VFD Group Plc was in third place for trading 561,810 units for N137.0 million.

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