FIXED INCOME MARKET
Banking system liquidity improved slightly today, opening with a deficit of ca -₦13.78 billion today, better than the previous day’s opening of ca -₦92.05 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 12.50% and 13.00% from 8.83% and 9.33% respectively, the previous day.
The NTB secondary market traded on a bearish note today, with most of the activity skewed to the July-September NTB papers at c. 6.85% and 7.00% levels, as market players reacted to the 40bps uptick in 1-year stop rate at yesterday’s NTB auction. Consequently, the average yield rose by 25bps across the NTB curve.
The FGN bonds secondary market was largely dominated by bearish sentiments, amid a lack of clarity on rate direction following the surprise hike in 1-year NTB paper stop rate at yesterday’s auction. Improved offers were seen on the 2036s and 2050s maturity at 12.65% and 13.00% levels respectively, but trades executed remained scanty due to lack of bids across the curve. Overall, average yield rose by ca 20bps, day-on-day.
Mixed trading sentiments were witnessed in the Eurobonds space today, with minimal activities observed across the yield curve. Consequently, average yield rose by ca 1bp, day-on-day.
The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NSE ASI) marginally lost 0.01% day-on-day, to close at 39,201.33pts, while market year-to-date return receded to -2.66%. This performance leaned heavily to profit taking activities in Zenith Bank Plc (-0.83%), Access Bank Plc (-0.53%), and Stanbic IBTC Holdings Plc (-0.51%), respectively.
The NSE Oil & Gas, Consumer Goods and Banking indices gained ca 0.55%, 0.14% and 0.03% respectively, while the Industrial Goods index lost ca 0.02% day-on-day.
FBN Holdings Plc led both the volume and value charts with ca 97.73 million units traded at ca ₦729.64 million.
In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦540.00/$1.00, ₦740.00/₤1.00 and ₦630.00/€1 from ₦535.00/$1.00, ₦730.00/₤1.00 and ₦629.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.67/$1.00 from ₦411.50/$1.00.
Global crude oil prices rose today, despite investors’ concerns about the latest wave of the Coronavirus – Delta variant which remains a threat to crude demand recovery. Thus, Brent Crude oil price gained ca 0.26% day-on-day to settle at $72.78pb, while WTI also rose ca 0.36% to $69.55pb, as at report time. Spot Gold lost ca 0.04% day-on-day to $1,792.70 per ounce as at report time.