FIXED INCOME MARKET
Banking system liquidity improved significantly, to open with ca ₦113.41 billion today, higher than yesterday’s opening balance of ca – ₦211.03 billion as the repayment of OMO maturities hit the system. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 15.50% and 15.75% from 17.50% and 17.50% respectively, the previous day.
Trading activities were subdued in the NTB secondary market as market players remained cautious ahead of tomorrow’s NTB auction. The August 2022 NTB paper witnessed the most traction, with trades executed at ca. 6.40% levels. Consequently, average rate stayed flat, day-on-day. Similarly, OMO secondary market traded on a muted note, with rates staying flat across the curve.
The FGN bonds secondary market sustained a bullish theme, with most of the trading activity skewed to the 2035s, 2036s, 2049s, and 2050s at c. 12.50%, 12.55%, and 12.75% levels. Overall, the average yield dipped ca 6 bps, day-on-day due to the sparse volume of trades executed across the curve.
The Eurobonds space saw bullish sentiments, with buy interest seen across the yield curve. Consequently, average yield dipped by ca 4bps, day-on-day.
With gains recorded in stocks such as Lafarge Africa Plc (+2.33%), Zenith Bank Plc (+0.82%), and Guaranty Trust Holding Company Plc (+0.36%), the domestic bourse closed in the green as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 7bps day-on-day to close at 39,460.68pts, while market year-to-date loss pared to –2.01%.
The NSE Industrial Goods, Banking and Consumer Goods indices gained ca 0.13%, 0.12%, and 0.08% while the NSE Oil & Gas index lost ca 0.19% day-on-day respectively, day-on-day.
Courteville Business Solutions Plc led the volume chart with ca 22.45 million units, while Seplat Energy Plc led the value chart with ca ₦289.65 million worth of trades.
In the parallel market, the greenback depreciated against the U.S Dollar, Pound Sterling and Euro to ₦521.00/$1.00, ₦710.00/₤1.00 and ₦605.00/€1 from ₦520.00/$1.00, ₦708.00/₤1.00 and ₦604.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.00/$1.00 from ₦411.83/$1.00.
Global crude oil prices rose today, on sustained optimism of demand recovery as the U.S regulators issued full approval for a COVID-19 vaccine which would allow for an increase in vaccination rates. Thus, Brent Crude oil price gained ca 3.21% day-on-day to settle at $70.96pb, while WTI also gained ca 2.89% to $67.54pb, as at report time. Spot Gold rose ca 0.16% day-on-day to $1,809.20 per ounce as at report time.