FIXED INCOME MARKET
Interbank system liquidity slightly improved today, albeit still in a deficit at ca ₦243.37 billion, lower than Friday’s negative balance of ca ₦281.85 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) trended lower to settle at 15.50% and 16.00% from 19.00% and 19.25%, respectively on Friday. We expect liquidity levels to ease further with expected inflows from coupon payments this week.
The NTB secondary market started the week with a bullish momentum. A handful of trades were executed, as local investors continue to seek NTB papers with attractive rates, particularly at the mid-long end of the NTB curve at ca 4.20% and 6.20% levels respectively, while offers were also observed at the short end of the curve at 4.00% levels. Overall, the average rate dipped ca 5bps, day-on-day to settle at 5.33%.
The FGN bonds secondary market traded on a quiet note in today’s session, albeit with notable demand seen for the 2026s, 2049s, and 2050s across the curve, as market players anticipate inflows from coupon payments to spur trading activities. However, very few trades were executed due to wide offers. Overall, the average yield remained stable, day-on-day to 11.71%.
The Eurobonds space was dominated with mixed sentiments, albeit with a bearish undertone. Overall, the average yield rose ca 1bp, day-on-day at 6.54%.
The domestic bourse started the week with a positive performance, sustaining its trend from the previous week. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.12% day-on-day to close at 41,814.74pts, while the year-to-date returns extended to +3.83%. Trading performances remain elevated as investors maintain buying interest in bellwethers such as First Bank of Nigeria Holdings Plc (+2.45%), Airtel Africa Plc (+1.30%), and Guaranty Trust Holding Company Plc (+0.35%).
The NSE Consumer Goods and Oil & Gas indices gained ca 0.43% and 0.40%, while the NSE Banking and Industrial Goods indices lost ca 0.19% and 0.06% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 350.54 million units traded at ca ₦4.35 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable against the dollar at to ₦415.07/US$1.00.
Global crude oil prices extended gains from the previous week, hitting a seven-year high as global crude stockpiles remained constrained amid robust demand worldwide due to economies recovering from coronavirus pandemic-induced slumps. Thus, Brent Crude oil price gained ca 0.87% day-on-day to settle at US$86.28pb, while WTI rose ca 0.94% to US$84.55pb, as at report time. Spot Gold gained ca 0.67% day-on-day to settle at US$1,808.40 per ounce as at report time.