FIXED INCOME MARKET
Interbank system liquidity slipped into a deficit, opening with a balance of ca -₦77.17 billion, lower than the Monday’s opening balance of ca ₦55.56 billion. However, with no significant funding needs and additional inflow from OMO maturity worth ca ₦85 billion, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 14.50% and 15.00% from 15.00% and 15.50% respectively, on Monday.
The NTB secondary market was relatively calm today, however, few trades were executed at the long end of the NTB curve, particularly for August-October papers at ca 6.75% levels. Overall, the average rate dipped ca 5bps, day-on-day to settle at 4.84%.
The FGN bonds secondary market was largely quiet as market players’ attention was centered on the outcome of the bond auction. However, the 2049s and 2050s saw bids around 12.90% and 13.20% respectively. Overall, the average yield dipped by 4bps, day-on-day to 11.73%.
A quiet trading session was observed in the Eurobonds space, with only a handful of trades executed across the sovereign curve. Consequently, the average yield remained stable, day-on-day at 6.44%.
The domestic bourse closed the day in the green, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.26% day-on-day, to close at 41,249.71pts. The market year-to-date returns extended to +2.43%, as investors’ optimistic sentiments spurred buying interest on stocks such as First Bank of Nigeria Holdings Plc (+3.83%), MTN Nigeria Communications Plc (+1.24%) and Zenith Bank Plc (+0.40%).
The NSE Industrial Goods index gained ca 0.04%, while the NSE Oil & Gas , Consumer Goods and Banking indices lost ca 0.39%, 0.24%, and 0.20% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 147.60 million units traded at ca ₦1.76 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.07/$1.00 from ₦414.73/$1.00.
Global crude oil prices rose today, as the Chinese government intensified efforts to control record-high coal prices and guarantee coal mines function at full capacity. Thus, Brent Crude oil price gained ca 0.19% day-on-day to settle at US$85.24pb, while WTI rose by ca 0.49% to US$83.37pb, as at report time. Spot Gold gained ca 0.77% day-on-day to settle at US$1,784.10 per ounce as at report time.