FIXED INCOME MARKET
Interbank system liquidity improved today, albeit still in a deficit at ca ₦0.27 billion against a negative balance of ca ₦77.99 billion yesterday. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 15.00% and 16.00% from 17.00% and 18.00% respectively, the previous day.
The NTB secondary market sustained its quiet stance, albeit with a bearish undertone. Most of the trading activities were skewed towards the August to September NTB papers at c. 6.80% supported by wide bid spreads hovering around ≥ 7.00% levels. Thus, average rates remained flat, day-on-day.
The FGN bonds secondary market was relatively calm, with pockets of trades executed on the auctioned papers – (2028s, 2036s, and 2050s). The 2050s witnessed the most traction between 12.95% and 13.00% levels, however, the number of trades executed were sparse. Overall, the average yield remained stable day-on-day at 11.51%.
The Eurobonds traded bullish today, with soft demand seen on selected maturities across the curve. Consequently, average yield dipped by ca 2bps to 6.02%, day-on-day.
The domestic bourse closed the day in the green for the first time this week, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.06% day-on-day to close at 38,874.13pts, while market year-to-date loss pared to -3.47%. This was largely due to buying interest in bellwether stocks such as Guaranty Trust Holding Company Plc (+1.29%), United Bank for Africa Plc (+0.66%) and Stanbic IBTC Plc (+0.13%).
The NSE Banking index lost ca 0.19%, while the NSE Oil & Gas, Consumer Goods and Industrial Goods indices gained ca 0.68%, 0.08% and 0.01% day-on-day, respectively.
Mutual Benefits Assurance Plc led the volume chart with ca 13.72 million units while Guaranty Trust Holding Company Plc led the value chart with ca ₦270.93 million worth of trades.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦413.68/$1.00 from ₦413.18/$1.00.
Global crude oil prices extended gains today, on sustained optimism of fuel demand recovery and a bigger-than-expected draw in U.S. stockpiles as production remains hampered in the Gulf of Mexico after two hurricanes. Thus, Brent Crude oil price gained ca 0.89% day-on-day to settle at $76.87pb, while WTI also rose ca 1.29% to $73.15pb, as at report time. Spot Gold fell ca 1.75% day-on-day to settle at $1,747.60 per ounce as at report time.