Daily Market Update –May 15, 2013

The Money Market
Interest rates rose further today by an average of 1.00%. This was as a result of the ₦46 billion WDAS debit. Consequently, the secured and overnight funds traded at 15.00% and 15.25% respectively. Interest rates are expected to fall steeply from these levels upon the ₦246 billion T-bills maturity tomorrow.

Treasury Bills Market
The Treasury bills market was fairly active with a bearish trend witnessed across board. Yields on the short and medium tenured bills increased by an average of 0.25% while the long tenured bills increased by an average of 0.10%.

The Bonds Market
The bearish trend continued today, with selling pressure concentrated on the 5 and 7-yr on-the-run instruments re-opened at the auction. The price depreciation can be attributed to market expectation of higher yields at the auction. Prices on both bonds shed about ₦1.00 on average.

The Foreign Exchange Market
The FX interbank market opened 10kobo above previous day’s close. The market was relatively quiet and rates traded circa ₦157.30/40 levels for a major part of the trading hours. Slight demand shortly before close of market caused rates to close 15 kobo above the opening levels.

At the WDAS auction held today, the Central Bank sold $207.66 million at ₦155.74 to the dollar, against the $293.09 million it sold at the same rate during last Monday’s auction.

The Stock Market
Trading activities at the Nigerian Stock Exchange (NSE) was bullish today, as market capitalisation of equities appreciated by 0.67% to close at ₦11.58 trillion, from ₦11.51 trillion.

The NSE All-Share Index also appreciated by 0.67% to close at 36,236.49 basis points as against yesterday’s figures of 35,994.67; putting year-to-date returns at 29.05%.