FIXED INCOME MARKET
System liquidity improved today, opening with a balance of ca ₦39.15 billion, higher than previous day’s opening deficit of ca ₦72.26 billion, as inflows of ca ₦102 billion impacted the system from Open Market Operations (OMO) maturities. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 13.00% and 13.75% from 15.33% and 16.00% respectively, the previous day.
The NTB secondary market remained quiet today, as investors traded cautiously ahead of the Primary Market slated for tomorrow. Average rates were unchanged day-on-day.
Activities in the FGN bonds secondary market also remained subdued today, However, some demand was seen on the 2050 maturity at 13.00% levels while mild offers were seen on the 2036 and 2049 maturities at 12.70% levels. Overall, the average yield stayed flat day-on-day.
Bearish sentiments dominated the Eurobonds space today, with sell offs seen across the yield curve. Overall, average yield rose by ca 9bps, day-on-day.
The domestic bourse sustained its negative sentiments, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.01% day-on-day to close at 38,858.99pts, while market year-to-date loss expanded to -3.51%. This was largely due to losses in stocks such as Access Bank Plc (-1.09%), and Zenith Bank Plc (-0.64%).
The NSE Consumer Goods, Oil and Gas and Industrial Goods indices gained ca 0.10%, 0.04%, and 0.02% respectively, while the NSE Banking index lost ca 0.30% day-on-day.
Honeywell Flour Mills Plc led both the volume and value charts with ca 402.18 million units and ca ₦1.53 billion worth of trades.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.50/$1.00 from ₦414.83/$1.00.
Global crude oil prices continued to rally on sustained optimism of an increase in global crude oil demand, as more countries ease up on Coronavirus restrictions. Thus, Brent Crude oil price gained ca 0.44% day-on-day to settle at $79.88pb, while WTI also rose ca 0.70% to $75.58pb, as at report time. Spot Gold lost ca 1.30% day-on-day to settle at $1,729.90 per ounce as at report time.