FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦67.51 billion, a slight improvement from yesterday’s deficit balance of ca -₦77.17 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 15.00% and 15.50% from 14.50% and 15.00% respectively, the previous day.
The NTB secondary market traded mixed sentiments today, albeit with a bullish undertone. Trading activity ranged on a plethora of offers on the December – January NTB papers while demand was predominantly seen on the mid to long end of the NTB curve. Overall, the average rate dipped ca 6bps, day-on-day to settle at 5.02%.
The FGN bonds secondary market was relatively calm today, however, there was notable demand on the auctioned papers – 2026s and 2050s at ca 15bps and 3bps respectively, below yesterday’s auction close. There were also offers seen on the 2028s and 2036s at ca 12.10% and 12.80%. Overall, the average yield dipped by 7bps, day-on-day to 11.76%.
The Eurobonds space witnessed another subdued trading session, with minimal activity observed across the sovereign curve. Consequently, the average yield remained stable, day-on-day at 6.46%.
The domestic bourse closed on a positive note, as a sustained rally pushed market performance northward. The Nigerian Stock Exchange All Share Index (NSE ASI) gained 1.10% day-on-day to close at 41,704.11pts, while the market year-to-date returns extended to +3.56%. Bargain hunting was observed on stocks such as Nigerian Exchange Group (+9.79%), Airtel Africa Plc (+1.32%), and MTN Nigeria Communications Plc (+1.16%).
The NSE Oil & Gas index lost ca 0.36%, while the NSE Industrial Goods , Consumer Goods and Banking indices gained ca 2.16%, 1.45%, and 0.17% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led the volume chart with ca 51.92 million units while Airtel Africa Plc led the value charts with ca ₦722.16 million worth of trades.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.07/$1.00 from ₦414.07/$1.00.
Global crude oil prices hit a three-year high above US$86.00 per barrel today, although correction was observed as prices eased on account of some traders taking profit on signs that the rally caused by a supply report from the U.S. Energy Information Administration is overstretched. Thus, Brent Crude oil price fell ca 2.19% day-on-day to settle at US$83.95pb, while WTI dropped ca 2.39% to US$81.43pb, as at report time. Spot Gold lost ca 0.18% day-on-day to settle at US$1,781.70 per ounce as at report time.