FIXED INCOME MARKET
Interbank system liquidity improved significantly today (buoyed by OMO maturities and coupon payments worth ca ₦91.00 billion and ₦115.00 billion), opening with a credit balance of ca ₦0.78 billion higher than yesterday’s deficit balance of ca ₦243.37 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) trended lower to settle at 14.50% and 15.25% from 15.50% and 16.00% respectively, the previous day.
The NTB secondary market traded on a quiet note today, as market players remain cautious ahead of tomorrow’s NTB auction. However, few trades were executed across the curve, with offers seen on the 29 November CBN Special bills, December and January NTB papers, while demand was observed on the mid – long dated bills. Overall, average rates remained stable, day-on-day at 5.30%.
The FGN bonds secondary market was relatively calm today, despite inflows from 2029s and 2049s coupon payments. Notable demand was seen on the 2049s and 2050s at ca 12.85% and 13.10% while sell interest was centered at the short end of the curve, particularly for the 2024s, 2025s, and 2028s, respectively. Overall, the average yield dipped ca 4bps, day-on-day to 11.81%.
The Eurobonds space ended the day on a quiet note, amid slightly improved activities seen across the sovereign curve. Overall, average yield remained stable, day-on-day at 6.50%.
Overall performance of the domestic bourse was relatively flat today as the Nigerian Stock Exchange All Share Index (NGX ASI) remained unchanged day-on-day to close at 41,814.94pts, while the year-to-date return was stable at ca +3.83%. Bellwethers such as First Bank of Nigeria Holdings Plc, Guaranty Trust Holding Company Plc, and Airtel Africa Plc were the most actively traded counters.
The NSE Banking, Consumer Goods, and Industrial Goods indices gained ca 0.21%, 0.06% and 0.04%, while the NSE Oil & Gas index lost ca 0.38% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 73.06 million units traded at ca ₦906.75 million.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated against the dollar to ₦415.10/US$1.00 from ₦415.07/US$1.00.
Global crude oil prices continue to edge northward, although at a less aggressive pace. However, energy prices remained elevated, driven by strong demand as temperatures fall with the onset of winter season. Thus, Brent Crude oil price gained ca 0.44% day-on-day to settle at US$86.37pb, while WTI rose ca 0.84% to US$84.46pb, as at report time. Spot Gold fell ca 0.96% day-on-day to settle at US$1,789.50 per ounce as at report time.