The Month of January in Retrospect
The month of January was marked with mixed sentiment in the fixed income market. The FGN bond market closed the month on a bearish note, while the Nigerian Treasury market closed the month on a positive note. Overall, the Fixed Income (FI) market closed the month of January on a bullish note, with average FI yield down by 175bps to settle at 7.46%. This is attributed to the excess liquidity (an average of NGN723.91bn) in the financial system , spurring Investors’ demand.
The Month of February in Retrospect – The Other Side of the Coin
The month of February in the FI space was divergent to what was obtained in January. The FGN bond market ended the month with a bullish sentiment while the Nigerian Treasury Bills market closed the month on a negative note. Overall, the Fixed Income (FI) market closed the month bearish with average FI yield up by 120bps to settle at 8.65%. We suspect the bearish sentiment is attributed to a drop in liquidity levels amidst thin bond coupon payment and CRR debits.
ARM Securities Limited is a full-service brokerage house that offers best-in-class brokerage services to local as well as foreign private and institutional investors. Formerly known as Hamilton Hammer, the Company commenced operation in 1994 and was acquired by ARM Investment Managers in 2008--an acquisition which has successfully re-positioned the company as a recognized brokerage firm in Nigeria. The Company is a dealing member of the Nigerian Stock Exchange (NSE) and is regulated by Securities and Exchange Commission (SEC). ARM Securities research team provides insightful commentaries on the Nigerian economy and its equity and debt markets using an approach which incorporates a thorough understanding of the fundamentals of the industries and companies under coverage. The research therefore adopts an integrated methodology of top-down analysis and bottom-up stock selection, which focuses on publicly quoted companies on the Nigerian Stock Exchange that are judged to offer the highest potential for earnings growth. In addition, its analysts provide periodic commentaries on a range of topical global and local issues which provide investing clients with a holistic view of the opportunities and risks in today’s financial market landscape.
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