FIXED INCOME MARKET
System liquidity declined today, opening with a deficit of ca ₦7.60 billion, lower than previous day’s opening of ca ₦21.78 billion. Consequently, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 17.50% and 17.75% from 17.00% and 17.67% respectively, the previous day.
The NTB secondary market traded on a muted note, supported by wide bid/ask spreads, particularly the long-end of the rate curve. Thus, average rate remained flat day-on-day. Likewise, the OMO secondary market also remained quiet, as the lack of supply lingered. Thus, average rates remained flat, day-on-day.
The FGN bonds secondary market sustained its quiet stance today, as investors turned their focus to the Primary Market Auction (PMA). Overall, average yield stayed flat, day-on-day. At the PMA , stop rates declined across all the maturities offered, total subscription by investors was ca 2.40 times the amount on offer at ca ₦360.02 billion, with the DMO selling ca ₦260.09billion across the three maturities, ca 173% the amount offered.
Bearish sentiments dominated the Eurobonds space today, with sell-side activity witnessed across the curve. Thus, average yield gained ca 2bps, day-on-day.
The Nigerian equities market traded marginally down today as the Nigerian Stock Exchange All Share Index (NSE ASI) shed 0.01% day-on-day to close at 39,545.67pts, while market year-to-date loss expanded to -1.80%. This was largely due to losses in GTCO Nigeria Plc (-0.88%) and First Bank of Nigeria Plc (-0.68%).
The NSE Consumer Goods, Banking, Oil and Gas and Industrial Goods indices gained ca 0.12%, 0.08%, 0.04% and 0.04%, respectively.
Transnational Corporation Plc led the volume chart with ca 14.14 million units, while Nestle Nigeria Plc led the value chart with ca ₦1.18 billion worth of trades.
In the parallel market, the Naira depreciated against the U.S Dollar and Pound Sterling to ₦517.00/$1.00 and ₦707.00/₤1.00 from ₦515.00/$1.00 and ₦706.00/₤1.00 respectively, while appreciating against the Euro to ₦603.00/€1.00 from ₦605.00/€1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.75/$1.00 from ₦411.50/$1.00.
Global crude oil prices rose today, after four consecutive days of decline, despite growing concern of a drop in global crude oil demand due to a surge in new cases of the Delta variant of the Coronavirus. Thus, Brent Crude oil price gained ca 0.48% day-on-day to settle at $69.42pb, while WTI also gained ca 0.47% to $66.90pb, as at report time. Spot Gold lost ca 0.02% day-on-day to $1,787.30 per ounce as at report time.