Mixed sentiment permeated the month of April in the Fixed income space. The FGN bond market closed the month on a negative note, as average yield advanced 57bps MoM to 14.13%. On the other hand, the Nigerian Treasury Bills Market traded bullish as average yield declined 43bps MoM to close at 7.30%. Overall, the secondary Fixed Income (FI) market closed bearish as average FI yield edged up 7bps MoM to settle at 10.72%. Whilst the inflow of NGN735.96bn from maturing bond hit system liquidity towards the end of April, the excess liquidity only affected the Nigerian Treasury Bills market as investors’ appetite tilted more to short-term instruments amid macro-economic uncertainties.
With respect to liquidity, we expect a total of NGN324.43bn NTBs to mature in May. We expect yields to rise in May amid thinning system liquidity and incessant 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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