There are indications that increased foreign interest in the fixed income market contributed to the 14.6 per cent rise in Foreign Portfolio Investment (FPI) to $4.6billion, contributing 77.3% to total capital imported into the country. Nigerian Tribune checks reveal that results of open market operation (OMO) auctions in the past weeks show that investors continue to favour longer tenored instruments given the moderating yield environment. In the near term, “we expect investor appetite for longer tenored instruments to remain upbeat,” the bankers stated. On the longer tenored 231-day instrument, N200.0billiion was offered, N451.2billion subscribed while N451.2billion at the stop rate of 12.15per cent, representing an oversubscription of 1.3 times. According to NBS, total capital inflows surged 594.0per cent, reflecting low-base effect of Pre-I&E window era, and rose by a modest 17.1per cent Q-o-Q to US$6.3billion.

Source: Nigerian Tribune May 14, 2018 01:18 UTC