FIXED INCOME MARKET
Interbank system liquidity improved significantly today, with a credit balance of ca ₦191.95 billion, better than yesterday’s deficit balance of ca -₦9.24 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to 4.75% and 5.25% from 12.50% and 13.00% respectively, the previous day.
The NTB secondary market traded sideways today, albeit with a quiet stance. Buying interest from local investors was seen on maturities at the mid-long end of the NTB curve, particularly for the 27 October paper at ca 6.70%, while offers were witnessed at the short end of the curve. Overall, the average rates remained stable, day-on-day at 5.20%.
The FGN bonds secondary market traded with a mixed to bearish undertone. The 2028s and 2050s witnessed the most traction at ca 12.40% and 13.05%, while sideways interest was seen on the 2036s and 2037s at 12.85% and 12.95% levels, respectively. Nonetheless, the average yield remained flat, day-on-day at 11.64%, with few trades executed across the curve.
A bearish trading sentiment was witnessed in the Eurobonds space today, with improved offers across the sovereign curve. Overall, the average yield rose by ca 5bps, day-on-day at 6.65%.
The domestic bourse reversed losses from yesterday’s trading session, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.09% day-on-day to close at 42,013.39pts, while year-to-date returns extended to 4.33%. Buying interest was observed on stocks, like International Breweries Plc (+9.62%), BUA Cement Plc (+3.47%), and Dangote Sugar Refinery Plc (+0.91%), respectively.
The NSE Industrial Goods, Oil & Gas, and Consumer Goods indices gained ca 1.09%, 0.72%, and 0.57% respectively, while the NSE Banking index lost ca 1.51% day-on-day.
United Bank for Africa Plc led the volume chart with ca 52.58 million units while Zenith Bank Plc topped the value charts with ca ₦747.64 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.07/US$1.00 from ₦414.98/US$1.00, the previous day.
Global crude oil prices steadied near US$85.00 per barrel(bp), pushing for another multi-year high record, on the back of signs that oil production supply from OPEC and its allies is falling short. However, market expectations of an increase in U.S. crude stockpiles continue to weigh on price movements. Thus, Brent Crude oil price lost ca 0.45% day-on-day to settle at US$84.33pb, while WTI fell by ca 0.89% to US$83.30pb, as at report time. Spot Gold dropped ca 0.24% day-on-day to settle at US$1,791.60 per ounce as at report time.