FCSL MONTHLY FINANCIAL MARKET SOUNDBITE-JULY,2020

Macroeconomy

The country’s Consumer Price Index for the month of June remained elevated at 12.56%, while prior month CPI was 12.40%, the persistent rise in inflation have been propelled by cost pull inflation associated with logistics and structural impediments that affect agricultural products.
At the held MPC meeting for the Month of July, the committee unanimously held that its Benchmark rates be retained at its current rate, this implies that MPR was left unchanged at 12.5%, CRR at 27.5%, and Liquidity Ratio at 30.0%.
Purchasing Managers index, as reported for the month of July still reflect that the country’s economic activities are within the contractionary corridor, as Manufacturing PMI and Non-Manufacturing PMI stood at 44.9 index point and 44.3 index point respectively.
Securities & Commodities
Equities
The equities market for the month recorded a positive performance as the ASI rose by 0.88% to 24,693.73 from 24,479.22, top price mover for the month was Unity Bank, as the stock inched up by 27.08%, while JBERGER stock dipped by 24.43%. Based on NSE Indices for the month, the best the performed index was the industrial index, as it appreciated by 3.88% and the least performed indices was the oil &Gas index that declined by 13.30%.
Fixed Income
The primary bond auction for the month of July, witnessed sold and successful allotted bond of N177.00Bn, at the clearing yield of 6%, 9.50%, 9.80%, and 9.50%, across the respective maturity term structure of 5years, 15 years, 25years, and 20 years.
According to the three tranches of T-bills auction for the month, the aggregate sold Bills was N461.8Bn with a respective average clearing rate of 1.43%, 1.74%, and 3.38% across the tenor sequence of 91days, 182days, and 364days.
The yield at the secondary market was bullish for both Bonds and T-bills as they contracted by 151bps and 43bps, to the respective average yield of 7.48% and 1.56%, all based on our monitored maturity structures.
READ MORE