Unless there is a large number of capital inflows, the funding rate will hover around the current level next week. It seems that in major global markets, consumer and investor confidence is gradually recovering. The following is the performance of the global market: Macro update Shockingly, the largest economy in the United States increased employment in May after setting a record high last month. The unemployment rate fell to 13.3% from 14.7% in April.
The second phase of the lock-in easing policy will last for 6 weeks, from June 2 to June 29, and will begin operations on June 21. The curfew is still in effect, but it has been relaxed and is now effective from 10 pm Until 4 am In order to solve the income situation that plagued the country due to the pandemic, the country has launched the first round of marginal oil field permits in nearly 20 years. Marginal oil fields are smaller oil blocks, usually developed by local companies. The federal government has revoked existing permits in this area so that they can be placed in new permit rounds; in addition, judges in Lagos have prevented the government from revoking existing two oilfield permits.
At the recently concluded OPEC+ meeting, the group agreed to extend production cuts for another month, extending the total time for production cuts to 4 months. The price cuts seem to have brought some stability to the oil market, as oil prices rose 48% in the first month. As of press time, oil finally broke through US$40/barrel (US$40.08/barrel) for the first time since March.
Last week, with the support of about 600 billion euros in retail foreign exchange funds and CRR debit funds, the interest rate on funds increased substantially. OBB and overnight interest rates rose by 1340 basis points and 1380 basis points, closing at 15.60% and 16.70% of the week, compared with 2.20% and 2.90% w/w of the previous week, respectively. According to market sources, market liquidity is estimated at approximately 150 billion guilders. Experts expect that unless there is a large number of capital inflows, the financing rate will hover around the current level next week.
The Treasury bill market opened relatively quietly this week. Due to the sluggish yield of the New Taiwan dollar, there was almost no trading across the board. Therefore, due to limited market supply, activities in this space remained relatively weak for the remainder of the week. According to experts of Commercio Partner, as the focus on PMA gradually shifts, a similar trend is expected in the Treasury bill market next week.
The bond market opened relatively quietly this week, with very little trading volume as most of the attention turned to Islamic bond issuance. However, as liquidity continued to spur a bullish market, activity throughout the week began to improve slightly. All production fell by 9 bps w/w.
Foreign exchange market.
Nigeria’s foreign exchange reserves fell by 0.54%, by US$17.09 million, to US$36.58 billion, the first decline in weeks. As a result, the Naira depreciated against the US dollar and decreased by 0.04% to $1/₦386.50 on a weekly basis in the I&E window.
In the parallel market, the exchange rate of the currency against the US dollar, British pound and euro fell from $1/₦450, £1/₦540 and €1// to $1/₦460, £1/₦545 and €1/₦472 Weeks are 470 pounds.
The benchmark index fell 0.98% to 25,020.72 points last week. This week’s winner chart includes SKYAVN (+50.83%), JAPAULOIL (+50.00%), UAC-PROP (+20.00%) and ABCTRANS (+17.14%). On the other hand, AFROMEDIA (-23.08%), UACN (-13.89%), FIDSON (-12.94%), PZ (-12.73%) and CADBURY (-11.56%) are listed in this week’s lagging chart.
The Stock Exchange recorded three consecutive gains in all trading sessions this week. Therefore, the year-to-date rate of return has increased from -5.86% in the previous week to -6.79%.
The market value is set at NGN 13.05 billion. The breadth of the stock market closed at negative 0.67 times (1.55 times last week) because the market recorded thirty-nine (39) stocks that rose, while this week it fell by twenty-six (26) stocks. Experts expect that in the next week, the exchange will continue to carry out profit-taking activities. Abiola has worked in the press for about 14 years. His career covers some top local print media, such as TELL magazine, Broad Street Journal, and The Point Newspaper. Bloomberg MEI alumni interviewed the most influential figures of the International Monetary Fund, the G20 Summit, the former central bank governor and finance minister of the G20, the key communication world conference.