₦airaland Forum

40manlappy:
Interesting...@feelamong, ihavespoken

What do you make of the above information?

SuccessGee, we are waiting o

The info is good for the market....

I just hope they are able to mop up a lot of money cos the liquidity too mush!

Over N500B in matured Bonds to hit the system today...and these funds are mostly from the PFAs who only invest in Tbills and FGN Bonds

Tritri:
Nobody is bidding for 1yr? WHY?

According to the CBN TBills time table..there is no auction for the 364 days bills tomorrow..

easyflow:
Oga feelamong do I go with 17.5% for 182days?

To be on d safe side i will go in for 17.25%

OK..

CBN HAS JUST CALLED FOR OMO NOW...

This would change the dynamics of the Auction...

zendi:
If mr fickle brent continues up above 50 your patience may need elongation.
All the woes of the economy and the market are linked directly and indirectly to the troubles of mr brent.

better to remain bearish for now...

even if the Brent crosses $50.....the Scavengers have made sure that we do not benefit from any such rise....

https://www.thecable.ng/kachikwu-nigeria-will-need-produce-3-1mbpd-catch-budget-2016
Kachikwu: Nigeria will need to produce 3.1mbpd to catch up with budget 2016


better to remain a bit bearish and short sell until you see the Inflows from the Men In Black increasing..

Tritri:
@unite4real Almost 11pm now Nothing, And i want to bid for TB on 17th.

Check once again with your bankers/Investment house you biddded thru....

I got mine since last nite...

Blessedalldway:
Please Oga Feel among and other gurus in the house, what rates are safe for this coming bid?

Also, can we get the direct CBN link on how to check the secondary market rates so as to guide us in future.

Thanks guys.

I just confirmed that 90 days closed at 15.2% at the secondary market yesterday...

180 days also closed at 16.2%

not looking good at all....only a fresh OMO by CBN today would help these rates

Am not bidding today so i will not be too interested in the outcome..


If I was a betting guy, i will wait till 12 noon and if there is still no OMO, I will go with these rates.....

LIQUIDITY TOO MUSH!


If you dont like the drama of all this, just quietly go to the secondary market and purchase at 14%

fxuser:
Those mopping bargains, penny stocks , or targeting 52 week lows shud do so gradually and cautiously. Cheap may be cheaper & probably for longer than one can remain liquid. IMO


Disclosure
under 25% of portfolio in equities .. . holding more Cash/placements/etc

GBAM!

“The market can stay irrational longer than you can stay solvent.” -John Maynard Keynes

puna:
oga feelamong please can stock dividends cheque which have expired since 2013 be redeemed?

Yes they can be re validated....

speak to your Stock brokers to assist you on that

overcomer123:
To the gurus in the house who use GTB for their Treasury bills bidding, how does GTB do it, do they debit you before the bidding day?
I gave my account officer an instruction on friday, am yet to see a lien or debit on my account. Should I be worried or this is the way it is. I cant afford to wait another 2 weeks due to a sloppy account officer.

Also any hint or hw the rate for this bidding will be like?

The auction is on the 18th...

Your account would be debited on the 19th if you are successful

sanerugwei:
Let me try to punctuate it differently and see if it will be better.
Quoting Alikote:
5.5? That's armed robbery! Been with GTB for4 years, rate are over 15[%]. The investment banking is in same place as any branch, just ask [for the] investment section, write an application which is forwarded to Head Office. [You] can scan and send to [your] account officer. Buy bond if u will not be around for long. 15.54[%], by the time [you,re] back [your] fund go be almost double in 5yrs. It is zero risk, less risky,than fixed deposit. Banks can go under.

@ Alikote, feelamong and other gurus in the house; My question now is: Will the re-opening FGN Bonds auctioning on the 17th of this month still be at 15.54% for 2012.
Seeing the table below from DMO does not state the percentage for the reopened 2012 bid

Bond Name % FGN JUL 2021 (Re-opening) 12.50% FGN JAN 2026 (Re-opening) 12.40% FGN MAR 2036 (Re-opening)
Term-To-Maturity 4 Years, 11 Months 9 Years, 5 Months 19 Years, 7 Months
Range of Amount on Offer (N' bil) 35-45 25-35 35-45
Original Tenor 5-Year 10-Year 20-year

Dont mistake Coupon with the Yield...

The coupon remains the same at 15.54%

Its the yield that changes based on the prevailing Liquidity, Interest rates and Inflation Rates.

The Yields at Reopening would be based on the prevailing Investment climate...the Coupon remins the same..

This is why Bond traders make a lot of money trading on Bonds as you could buy at a premium or at a discount (They also loose money trading on Bonds) if they do not hold to maturity

puna:
@ oga feelamong other gurus in the house according to the CBN calender the window won't be open to take bids for the 344days tenor...how true is that?

Take a look at the Treasury Bills calendar earlier posted...Clearly it shows that Only the 91 days and 182 days Tbills would be on offer by the CBN

The best investments I did this year we're the stocks I bought in late January when everything was bearish and Oil price was $26 - $28 and there was doom and gloom everywhere..

While I have exited my positions bar 2 banks; this is the time to keep a closer eye on the market for the bargains that would be thrown up...

It's also a time to keep a tab on the foreign inflows....

This too shall Pass!!

Chidieberelex:
Are u saying the rate will be around 18% for 364 days in d next bid. Please I need to know

The market is still very liquid...

Even with the OMO auction...lets wait till Monday to see how it goes...CBN might be coming in for more OMO auction

sanerugwei:
Oga feelamong,
What rates were announced in the OMO by CBN?

OMO 12/08/2016

Amount on Offer - N50B

Tenor - 188 days

Total subscription - N256B

Total sale - N256B

Stop rate - 18%

sanerugwei:
Oga feelamong,
What rates were announced in the OMO by CBN?

Not sure yet...

havent been told by my bankers yet..

ukay2:
Pls oga feelamong... What is OMO and how does OMO affect NTB..

Can one invest in OMO....?

Thanks for your response.....

From wikipedia

An open market operation (OMO) is an activity by a central bank to give (or take) liquidity in its currency to (or from) a bank or a group of banks. The central bank can either buy or sell government bonds in the open market (this is where the name was historically derived from) or, which is now mostly the preferred solution, enter into a repo or secured lending transaction with a commercial bank:

the central bank gives the money as a deposit for a defined period and synchronously takes an eligible asset as collateral. A central bank uses OMO as the primary means of implementing monetary policy.

The usual aim of open market operations is - asides from supplying commercial banks with liquidity and sometimes taking surplus liquidity from commercial banks - to manipulate the short-term interest rate and the supply of base money in an economy, and thus indirectly control the total money supply.

So thhat the wikipedia definition of OMO...

It is used by the central bank to mop up or increase liquidity depending on what they want to achieve as this has an effect on the Discount rate/Interest rate in the short term.

How does it affect Treasury Bills?
Since the level of Liquidity affects the rates at which Investors are readily willing to quote, a reduction in the liquidity would mean that there will be fewer funds chasing these Bills and as such Investors would quote higher rates.

when there is excess liquidity, usually you have a bullish session where Investors would just be willing to invest at lower rates unlike what you get in periods of tight liquidity

can one Invest in OMO?
I asked my bankers and he said YES..if you are a High networth Investor like Banks/PFAs/Investment Houses. Also becos the CBN notice is usually very short, at times just 20mins its only those with very ready liquidity that are able to benefit from this..

CBN has just announced OMO...

This should be the game changer on the yields and Tbills discount rate going forward!

Chidieberelex:
What rates are we expecting on the next bid. Feelamong what's up. The standard chartered guy, please its time again

Oga,

Like i posited before, rates have been coming down seriiously and only a CBN OMO can save the rates for now.

Yesterday 364 days Bill in the secondary market closed below 16%...

next week we are looking at over N600B maturing in the FGN Bond and only N120B to be taken up in the proposed Auction.

Most of these funds belong to the PFAs and for these guys they basically have no other outlet other than govt securities...

I rushed to purchase 91 days bill for a cousin at 14% the other day in the secondary market cos at this rate it might even close below that ...UNLESS CBN MOPS UP

http://www.nse.com.ng/Financial_NewsDocs/14748_ZENITH_BANK__AUDITED_Q2_JUNE_2016_FINANCIAL_STATEMENTS_AUGUST_2016.pdf

25kobo div pere even in the mist of their 15% EPS drop

binaflexia:
What offense Diamond Bank has committed?

Just keep ur eyes on the ball while the match is still on..

stop looking at the score boards

otokx:
Will not touch Fidelity bank @ 70 kobo

For stocks,....Never say never!

fxuser:
FIDELITYBK set a new 52-week low during today's trading session when it reached N1.01
#bearHuG

Now i need to stay closer to the market...

some wicked bargains are about to show...

You were quoted to be bigger by REBASING your economy....

Now reality sets in and you are all crying!!

You all should better get to work and become more productive!

All the fake GDP we had by chopping government money witout any commensurate work is Over!

GET TO WORK!!!!

I Thot Fayose said he did not want to see any cow in Ekiti state?

Now the state is talking about Grazing ranches

confluence:
@Boss Feelamong,
i sent you a mail ,please reply ASAP

Replied!

unite4real:
Market is trending southwards so far. I expect next TB auction results to pull backwards from the previous.

Only a massive OMO mop up by CBN can save the Southwards journey of Tbills for now...

I had to rush and buy at 14% for 91 days at the secondary market for a cousin today....

locodemy:
oga did i hear you mentioned 6billion units OS?............pls oga intendy tell us how many OS is Wapic.....i no get power to do arguement now.

From my own records..WAPIC has a OS of 13,382,738,248

Oando To Soon Announce Sale of Gas Division to Helios


http://africaoilgasreport.com/2016/08/gas-monetization/oando-to-soon-announce-sale-of-gas-division-to-helios/#.V6rpvPXQBgE.twitter


So what is now left in OANDO for its shareholders? kai!

drtonyo:
Please whats going on with WAPIC ? Over 150 million units bought today

won ti bere!

dem don start!

#CowboysAtWork

Intendy:
http://businessdayonline.com/cbn-gives-banks-one-off-forbearance-on-npls/

+ve

Good news for the banks.....

would be watching to see if they will rally enough for me to exit UBA and FCMB

vacanci:
Thank you very much feelamong.

13th is Saturday and 17th is Wednesday. Will i get the payment early enough to use it for the months bid for the 17th? I dont know if coupons can be paid on Saturdays.

If Coupon date falls on a weekend or non working date...the payment date is the next working date!

It should hit ur account on that date (15th) more than enough time to bid at the 17th Aug Auction date