FIXED INCOME MARKET

Money Markets                                                                                 

Banking system liquidity opened with a deficit of ca ₦94.47 billion today, lower than previous day’s opening deficit of ca ₦15.07 billion, despite inflows from Open Market Operations (OMO) maturities of ca ₦38.00 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 14.00% and 14.50% from 14.50% and 14.75% respectively, the previous day.

Treasury Bills                               

Activity in the NTB secondary market was subdued today as investors looked to the Primary Market Auction (PMA) to be conducted tomorrow.  Some offers were witnessed on the long dated maturities as players looked to offload existing exposures ahead of the next NTB auction.

Bonds  

The FGN bonds secondary market sustained its bearish stance today, with improved offers seen on the 2028, 2035, 2036, 2049 and 2050 maturities at 11.80%, 12.90%, 12.95%, 13.00% and 13.25% respectively. However, bids were scarce, ensuring only few trades were executed. Overall, average yields rose ca 10bps, day-on-day.

Eurobonds

The Eurobonds space saw light bullish activity today, with a trickle of demand seen across the yield curve. Overall, average yield lost ca 1bp, day-on-day.

Equities

With gains in banking stocks such as Zenith Bank Plc (+0.42%), the domestic bourse recovered slightly, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.01% day-on-day, to close at 38,920.50pts, while market year-to-date loss reduced to -3.35%.

The NSE Industrial Goods and Banking indices gained ca 0.13% and 0.09% while the NSE Oil and Gas and Consumer Goods indices lost ca 0.39% and 0.08%. respectively, day-on-day.

Wema Bank Plc led the volume chart with ca 46.76 million units while Access Bank Plc led the value chart with ca ₦263.49 million worth of trades.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦557.00/$1.00, ₦760.00/₤1.00 and ₦645.00/€1.00 from ₦550.00/$1.00, ₦750.00/₤1.00 and ₦637.00/€1.00, respectively, yesterday. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦412.08/$1.00 from ₦412.75/$1.00.

Commodities

Global crude oil prices continued to rally, on sustained concerns of a drop in U.S crude oil supply, as the U.S Gulf of Mexico oil platforms prepare for evacuation in anticipation of tropical storm Nicholas,  despite still recovering from hurricane Ida. Thus, Brent Crude oil price gained ca 0.41% day-on-day to settle at $73.81pb, while WTI also rose ca 0.37% to $70.71pb, as at report time. Spot Gold lost ca 0.50% day-on-day to settle at $1,785.20 per ounce as at report time.

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