FIXED INCOME MARKET
Banking system liquidity opened with a deficit of ca ₦15.07 billion today, lower than Friday’s opening of ca ₦7.44 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 14.50% and 14.75% from 14.00% and 14.50% respectively, the previous day.
Activity in the NTB secondary market was bearish today, with players looking to offload existing exposures ahead of the next NTB auction on Wednesday. Offers were mostly seen on the July 2022 and September 2022 papers at 6.90% and 7.10% levels respectively, with little trades executed. Therefore, average rate remained flat day-on-day.
The FGN bonds secondary market sustained its bearish stance today, offers were seen on the 2035, 2036, 2049 and 2050 maturities at ca 12.80%, 12.85%, 12.87% and 13.05% respectively. Overall, average yields rose ca 12bps, day-on-day.
Activity in the Eurobonds space was relatively subdued today, with a few trades executed across the yield curve. Overall, average yield remained unchanged, day-on-day.
Performance in the domestic Equities Market continued to trend south, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.02% day-on-day, to close at 38,915.62pts, while market year-to-date loss expanded to -3.36%. This was largely due to losses in Oando Plc (-4.09%) and First Bank of Nigeria Holdings Plc (-0.66%).
The NSE Consumer goods and Banking indices gained ca 0.20% and 0.13% while the NSE Oil and Gas and Industrial Goods indices lost ca 0.74% and 0.11%. respectively, day-on-day.
Universal Insurance Plc led the volume chart with ca 19.45 million units while Nestle Nigeria Plc led the value chart with ca ₦1.21 billion worth of trades.
In the parallel market, the Naira depreciated against the U.S Dollar and Pound Sterling to ₦549.00/$1.00 and ₦747.00/₤1.00 from ₦545.00/$1.00 and ₦745.00/₤1.00, respectively, while remaining stable against the Euro at ₦636.00/€1. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦412.75/$1.00 from ₦412.00/$1.00.
Global crude oil prices rose further today, to its highest in over week on concerns of a drop in U.S crude oil supply, following reports that three-quarters of the U.S. Gulf’s offshore production has remained halted since late August 2021, due to hurricane Ida. Thus, Brent Crude oil price gained ca 1.07% day-on-day to settle at $73.70pb, while WTI also rose ca 1.26% to $70.60pb, as at report time. Spot Gold lost ca 0.22% day-on-day to settle at $1,788.10 per ounce as at report time.