FIXED INCOME MARKET
Interbank system liquidity waned today, opening with a deficit balance of ca -₦60.25 billion which is lower than the previous day’s opening balance of ca ₦35.67 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 15.50% and 16.25% from 14.50% and 15.25% respectively, the previous day.
The NTB secondary market was largely quiet today, with most of the trading activity around the long-dated NTB papers and CBN’s special bills at c.7.00% and 6.50% respectively. However, offers remained frail across the NTB curve causing average rates to remain stable day-on-day.
The FGN bonds secondary market sustained its quiet stance, as market players remain cautious ahead of tomorrow’s primary auction. However, few trades were executed mostly at the long end of the curve, as some investors cherry-picked attractive yields across the 2036s and 2050s at c.12.65% and 12.85% levels, respectively. Nonetheless, average yield was unchanged day-on-day.
Mixed trading sentiments were witnessed in the Eurobonds space today, with minimal activities observed across the yield curve. Thus, average yield gained ca 1bp, day-on-day.
The bearish trend in the domestic bourse was sustained today, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost ca 0.08% day-on-day to close at 38,873.85pts, while market year-to-date loss expanded to -3.47%. There were losses recorded in bellwether stocks such as Zenith Bank Plc (-2.34%), Access Bank Plc (-1.11%), and Guaranty Trust Holding Company Plc (-0.73%), respectively.
The NSE Industrial Goods and Oil & Gas indices gained ca 0.08% and 0.06% while the NSE Banking index lost ca 0.97% day-on-day, respectively. The NSE Consumer Goods index closed flat.
United Bank for Africa Plc led the volume chart with ca 38.99 million units while Guaranty Trust Holding Company Plc led the value chart with ca ₦517.86 million worth of trades.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦413.28/$1.00 from ₦413.68/$1.00.
Global crude prices extended their losses today, amid rising concerns attributed to the potential impact on China’s economy of a crisis linked to the heavily indebted property group China Evergrande. Thus, Brent Crude oil price lost ca 0.07% day-on-day to settle at $73.87pb, while WTI also lost ca 0.23% to $70.13pb, as at report time. Spot Gold gained ca 1.02% day-on-day to settle at $1,781.80 per ounce as at report time.