FIXED INCOME MARKET
Banking system liquidity opened at ca ₦7.44 billion today, a slight improvement from yesterday’s deficit balance of ca -₦13.78 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 14.00% and 14.50% from 12.50% and 13.00% respectively, the previous day.
The NTB secondary market sustained a somewhat bearish theme closing the week, with most of the activity skewed to the July-September NTB papers at c.7.00% and 7.05% levels. Although buying interests remained relatively weak, causing average rates to remain stable day-on-day.
The FGN bonds secondary market maintained its bearish momentum, albeit in a less aggressive manner. Improved offers seen at the far mid – long end of the curve spurred interest on the 2035s, 2036s, 2049s, and 2050s at c.12.60%,12.70%, 12.58%, and 13.00% respectively. Overall, average yields remained unchanged, day-on-day.
Quiet sentiments dominated the Eurobonds space closing the week, with a handful of trades executed across the curve. Overall, average yield remained stable, day-on-day.
With selloffs recorded in stocks such as Airtel Africa Plc (-4.67%) and Guaranty Trust Holding Company Plc (-0.18%), the Nigerian Stock Exchange All Share Index (NSE ASI) ended the last trading day of the week in the red. The NSE All Share Index lost 0.71% day-on-day to close at 38,912.78pts while market year-to-date loss rose to -3.35%.
The NSE Banking and Oil & Gas indices lost ca 0.84% and 0.16% while the NSE Consumer Goods index gained ca 0.02% day-on-day, respectively. The NSE Industrial Goods index closed flat.
United Bank for Africa Plc led the volume chart with ca 15.26 million units while Airtel Africa Plc led the value chart with ca ₦643.82 million worth of trades.
In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦545.00/$1.00, ₦743.00/₤1.00 and ₦636.00/€1 from ₦540.00/$1.00, ₦740.00/₤1.00 and ₦632.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦412.00/$1.00 from ₦411.67/$1.00.
Global crude oil prices continue to rally on sustained optimism of tighter oil supply in the United States, as published reports by the Energy Information Administration (EIA) showed the largest drawback in U.S. crude stockpiles since September 2019. Thus, Brent Crude oil price gained ca 2.09% day-on-day to settle at $72.94pb, while WTI also rose ca 2.41% to $69.78pb, as at report time. Spot Gold lost ca 0.31% day-on-day to $1,794.50 per ounce as at report time.