FIXED INCOME MARKET
System liquidity eased slightly today, nevertheless, opening with a deficit of ca -₦40.34 billion today, better than the previous day’s opening of ca -₦117.48 billion. Despite the funding needs ensuing from the NTB auction settlement, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 16.67% and 17.33% from 17.00% and 17.50% respectively, the previous day.
The NTB secondary market traded on a bullish note today, as market players sought to fill lost bids at yesterday’s auction. Pockets of trades were executed on the newly issued 1-year NTB paper at sub 6.85% levels, ca 50 bps below its stop rate. Consequently, this caused average rate to drop 20bps at the long end of the NTB curve, day on day. The OMO secondary market traded on a muted note, with yields staying flat across the curve.
Mixed to bullish sentiments dominated the FGN Bonds secondary market today, as demand was seen on the 2026, 2027, 2028, 2034 and 2035 maturities – losing on average, ca 12 bps. The 2036 & 2050 maturities on the one hand was relatively mixed, amid lack of clarity ahead of next week’s bond auction.
The Eurobonds market saw a mixed trading session today, albeit with a bullish undertone with minimal trading activities seen across the yield curve. Hence, average yield dipped by ca 1bp, day-on-day.
The domestic bourse closed the day in the green for the third consecutive session, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.11% day-on-day to close at 39,490.06pts, while market year-to-date loss pared to -1.94%. This was largely due to gains in Guaranty Trust Holding Company Plc (+1.07%), Dangote Cement Plc (+0.67%),and Zenith Bank Plc (+0.41%).
The NSE Industrial Goods Index gained ca 0.35%, while the NSE Banking, Oil & Gas and Consumer Goods indices fell ca 0.24%, 0.23% and 0.02% day-on-day, respectively.
Honeywell Flour Mill Plc led both the volume and value charts with ca 384.07 million units traded at ca ₦654.16 million.
In the parallel market, the Naira remained relatively stable against the U.S dollar at ₦515.00/$1.00, while appreciating against the Pound Sterling to ₦702.00/₤1.00 from ₦703.00/₤1.00. However, the greenback weakened against the Euro to ₦598.00/€1.00 from ₦596.00/€1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.67/$1.00 from ₦411.40/$1.00.
Global crude oil prices declined at a less aggressive pace, as investors reacted to reports that the United States had asked top oil producers to boost supply output to combat rising gasoline prices as economies ease lockdown. Thus, Brent Crude oil price lost ca 0.39% day-on-day to settle at $71.16pb, while WTI fell ca 0.45% to 68.94pb, as at report time. Spot Gold lost ca 0.11% day-on-day to $1,751.30 per ounce as at report time.