FIXED INCOME MARKET
Interbank system liquidity opened in a deficit ca -₦211.01 billion, significantly lower than the previous day’s balance of ca -₦0.27 billion due to the funding needs on the back of the Bond auction settlement. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 16.00% and 17.25% from 15.00% and 16.00% respectively, the previous day.
The NTB secondary market closed the week on a muted note, albeit with a bearish trace at the tail end of the curve. Improved offers were observed on the July and August 2022 NTB papers at 6.80% levels, but bids remained far off. Thus, average rates were unchanged day-on-day, staying at 5.41%.
The FGN bonds secondary market traded on a muted note, with only a handful of trades executed on the 2036s at c.12.70% levels. Overall, the average yield stayed flat day-on-day at 11.53%.
Bearish sentiments dominated the Eurobonds space closing the week, with sell offs seen across the yield curve. Overall, average yield rose by ca 5bps to 6.07%, day-on-day.
The domestic bourse closed the last trading day of the week in the green, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.23% day-on-day to close at 38,962.28pts, while market year-to-date loss trimmed to -3.25%. This was largely due to demand in stocks such as Access Bank Plc (+4.07%), Zenith Bank Plc (+2.84%), and Guaranty Trust Holding Company Plc (+1.28%).
The NSE Banking, Consumer Goods and Oil & Gas indices gained ca 1.86%, 0.06%, and 0.04% day-on-day, respectively. The NSE Industrial Goods index closed flat.
FBN Holdings Plc led both the volume and value charts with ca 481.51 million units traded at ca ₦3.61 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦414.90/$1.00 from ₦413.68/$1.00.
Global crude oil prices headed for a third straight week of gains supported by global output disruptions in U.S. Gulf Coast production due to Hurricane Ida and sharp draws in global crude inventories. Thus, Brent Crude oil price gained ca 0.76% day-on-day to settle at $77.83pb, while WTI also rose ca 0.63% to $73.76pb, as at report time. Spot Gold gained ca 0.15% day-on-day to settle at $1,752.50 per ounce as at report time.