FIXED INCOME MARKET
Interbank system liquidity slipped into a deficit, opening with a balance of ca -₦281.85 billion, significantly lower than yesterday’s balance of ca ₦67.51 billion. This was due to the settlement of the bond auction, thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 19.00% and 19.25% from 15.00% and 15.50% respectively, the previous day.
The NTB secondary market closed the week on mixed sentiments, with demand seen on the August-October NTB papers at ca 6.60% while a plethora of offers were observed at the short end of the curve, particularly for the December – January NTB papers. Overall, the average rate dipped ca 3bps, day-on-day to settle at 5.20%.
The FGN bonds secondary market ended the week with a quiet theme, amid improved offers seen for the 2028s and 2036s at ca 12.00% and 12.80% respectively, while traction was relatively observed for maturities at the far end of the bond curve – 2049s and 2050s at ca 12.85% and 13.18%. Overall, with only a handful of trades executed across the curve, the average yield remained stable, day-on-day to 11.75%.
The Eurobonds space traded quietly today, with minimal activity observed across the sovereign curve. Consequently, the average yield remained stable, day-on-day at 6.49%.
The domestic bourse closed the last trading day of the week in the green, despite the profit-taking activities observed on some stocks. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.14% day-on-day to close at 41,763.26pts, while the market year-to-date returns extended to +3.71%. Buying interest was seen for stocks such as Seplat Energy Plc (+1.60%), First Bank of Nigeria Holdings Plc (+1.24%), and Zenith Bank Plc (+0.20%).
The NSE Oil & Gas, Consumer Goods, Banking, and Industrial Goods indices gained ca 2.48%, 0.31%, 0.29%, and 0.04% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 154.40 million units traded at ca ₦1.91 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable against the dollar at to ₦415.07/US$1.00.
Global crude oil prices closed the week on an upward trajectory, as market sentiments rode on continued tightness in the U.S. crude stockpiles. Thus, Brent Crude oil price gained ca 0.35% day-on-day to settle at US$84.91pb, while WTI rose ca 0.39% to US$82.83pb, as at report time. Spot Gold gained ca 1.86% day-on-day to settle at US$1,814.80 per ounce as at report time.