FIXED INCOME MARKET
Liquidity in the banking system eased slightly today, opening with a balance of ca ₦137.27 billion, lower than the previous day’s opening of ca ₦258.10 billion. Nevertheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 8.33% and 8.50% from 10.00% and 10.00% respectively, the previous day.
The NTB secondary market closed the week on a bearish note, with sustained offers on the newly issued 1-year NTB paper at c. 6.50%-6.60% levels. Overall, average rates remained unchanged, with very few trades executed due to the scarce bids across the NTB curve. The OMO secondary market was very quiet, with little or no activity seen across the curve. Thus, average rate remained flat, day-on-day.
The FGN bonds secondary market closed the week on a muted note. The 2035 and 2036 instruments witnessed mild interest at c.12.40% and 12.50% levels respectively, while offers were skewed to the 2050s at 12.75%. However, the number of trades executed was sparse causing the average yields to remain relatively flat across the curve.
The Eurobonds secondary market closed the week with bullish sentiments, as demand was seen across the yield curve. Consequently, average yield reduced by ca 1bp, day-on-day.
The Nigerian Equities Market closed the week on a positive note, with the Nigerian Stock Exchange All Share Index (NSE ASI) gaining 0.02% day-on-day, to close at 39,485.65pts, while market year-to-date loss trimmed to -1.95%. This was largely due to gains in Honeywell Flour mill Plc (+2.60%), Zenith Bank Plc (+0.41%), and MTN Nigeria Communications Plc (+0.29%).
The NSE Oil & Gas and Banking indices gained ca 0.31% and 0.29% while the NSE Consumer Goods index lost ca 0.25% day-on-day, respectively. The NSE Industrial Goods index closed flat.
Transnational Corporation of Nigeria Plc led the volume chart with ca 45.13 million units, while Guaranty Trust Holding Company Plc led the value chart with ca ₦614.25 million worth of trades.
In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦524.00/$1.00, ₦713.00/₤1.00 and ₦606.00/€1.00 from ₦522.00/$1.00, ₦712.00/₤1.00 and ₦605.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦412.00/$1.00 from ₦410.88/$1.00.
Global crude oil prices rose today, on track for its biggest weekly gain since June 2020 amid increasing worries about supply disruptions as energy companies began to shut down production in the Gulf of Mexico ahead of a possible hurricane forecast. Thus, Brent Crude oil price gained ca 1.73% day-on-day to settle at $72.30pb, while WTI also rose ca 1.79% to $68.66pb, as at report time. Spot Gold gained ca 0.81% day-on-day to $1,809.90 per ounce as at report time.