FIXED INCOME MARKETS
System liquidity improved today, opening with a balance of ca ₦11.58 billion, better than the previous day’s opening of ca -₦40.34 billion. Nonetheless, the Open Buy Back (OBB) rate gained ca 8bps day-on-day to settle at 16.75%, due to the funding pressure from the Retail FX auction that held today, while the Overnight (ON) rate trended lower to settle at 17.25% from 17.33%, the previous day.
The NTB secondary market closed the week maintaining its bullish momentum, with most of the trading activities skewed towards the newly issued 1-year paper, causing its average rate to drop by ca 18 bps to close at 6.50%. The June and July papers also witnessed light demand at 6.40% levels. The OMO secondary market ended the week on a quiet note, with the average rate remaining stable, day-on-day.
The FGN bonds secondary market ended the week on a muted note, as market players remain cautious ahead of next week’s bond auction. However, there were notable offers on some selected maturities – 2027s, 2028s, 2036s, and 2050s at sub 11.55%, 12.60% and 12.85%, respectively. Overall, average yield remained relatively flat, day-on-day.
Mixed trading sentiments were witnessed in the Eurobonds space today, with minimal activities observed across the yield curve. Thus, average yield remained stable, day-on-day.
The domestic bourse maintained its upward trend at the close of the week, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.08% day-on-day to close at 39,522.34pts, while market year-to-date loss pared to -1.86%. This was largely due to gains in Flour Mills Nigeria Plc (+1.84%) and Zenith Bank Plc (+0.41%).
The NSE Oil & Gas Index lost ca 0.54%, while the NSE Consumer Goods, Banking, and Industrial Goods indices gained ca 0.40%, 0.35% and 0.12% day-on-day, respectively.
Flour Mills Nigeria Plc led both the volume and value charts with ca 52.47 million units traded at ca ₦1.60 billion.
In the parallel market, the Naira remained stable against the U.S Dollar, Pound Sterling and Euro at ₦516.00/$1.00, ₦701.00/₤1.00 and ₦601.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.80/$1.00 from ₦411.67/$1.00.
Global crude oil prices declined today, as the International Energy Agency (IEA) expressed concerns about the stalled growth in demand for crude and its products due to the surge in Coronavirus cases across the world which has revived movement restrictions. Thus, Brent Crude oil price lost ca 0.43% day-on-day to settle at $71.00pb, while WTI fell ca 0.32% to 68.87pb, as at report time. Spot Gold gained ca 1.35% day-on-day to $1,775.50 per ounce as at report time.