FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦101.54 billion, higher than yesterday’s opening balance of ca ₦80.66 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 7.50% and 7.75% from 6.17% and 6.83% respectively, the previous day.
The NTB secondary market sustained a bullish theme, with demand seen on maturities at the long end of the NTB curve, particularly for the July to September NTB papers at ca 6.90% and 7.10% while few offers were observed at around <6.80% levels. Overall, average rates fell ca 5bps day-on-day to 4.93%.
Bullish sentiments dominated the FGN Bonds secondary market, following the release of DMO’s Q4 borrowing calendar, where the 2028s and 2036s were swapped with 2026s and 2037s. Intense buying pressure was observed on the 2036s, as it slipped from 12.85% to 12.72%. Overall, average yields fell c.6bps day-on-day to 11.59%, with major trading activities skewed to the 2035s, 2036s, 2049s, and 2050s, respectively.
The Eurobonds space sustained its bearish stance today, with improved offers seen across the Nigerian sovereign papers. Overall, the average yield rose by ca 12bps to 6.50%, day-on-day.
Performance in the domestic equities market sustained a positive trajectory, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.12% day-on-day, to close at 40,765.20pts, while market year-to-date gain extended to +1.23%. Buying interest was driven for stocks such as FBN Holdings Plc (+7.78%), N NIG. Flour Mills Plc (+6.49%) and Zenith Bank Plc (+0.63%), respectively at today’s trading session.
The NSE Banking and Industrial Goods indices gained ca 0.06% and 0.05%, while the NSE Consumer Goods and Oil & Gas indices lost ca 0.15% and 0.04% day-on-day, respectively.
FBN Holdings Plc led both the volume and value charts with ca 108.74 million units traded at ca ₦1.07 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦414.73/$1.00 from ₦414.30/$1.00.
Global crude oil prices retreated from a multi-year high ($83.47, the highest since October 2018 ), due to the American Petroleum Institute (API) report which showed an increase in U.S. crude inventories. Thus, Brent Crude oil price fell ca 1.90% day-on-day to settle at $80.99pb, while WTI also dropped ca 1.96% to $77.38pb, as at report time. Spot Gold gained ca 0.09% day-on-day to settle at $1,762.40 per ounce as at report time.