FIXED INCOME MARKET
Interbank system liquidity further weakened with a credit balance of ca ₦41.80 billion, lower than the previous day’s opening of ca ₦128.63 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to 12.00% and 12.38% from 12.50% and 13.00% respectively, the previous day.
The NTB secondary market closed the week on a bullish note, with traction skewed to 27 October NTB papers. Offers dropped ca 10bps to settle at 6.30%, while bids hovered around 6.45% and 6.50% levels at the far end of the curve. Overall, the average rate dipped ca 5bps, day-on-day to 5.26%. The OMO market traded on a similar note, with major demand noticed on 04 and 25 October papers at 6.70%.
The FGN bonds secondary market closed the week on a relatively quiet note, with scanty trades executed across the curve. Pockets of trades were skewed to the 2037s at 12.90% levels. Overall, the average yield stayed relatively flat, day-on-day at 11.71%.
The Eurobonds space sustained bullish sentiments at the close of the week, with buying interest observed on select maturities across the sovereign curve. Overall, the average yield dipped by ca 5bps, day-on-day to 6.78%.
The domestic bourse closed the last trading day of the week in the green, reversing previous day losses. The Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.17% day-on-day to close at 42,014.50pts, while year-to-date returns extended to 4.33%. This was due to gains in First Bank of Nigeria Holdings Plc (+3.26%), Access Bank Plc (+2.70%), and Zenith Bank Plc (0.41%), respectively.
The NSE Banking, Oil & Gas, and Industrial Goods indices gained ca 0.32%, 0.22%, and 0.06% day-on-day, respectively. The NSE Consumer Goods Index closed flat.
Sterling Bank Plc led the volume chart with ca 83.56 million units while First Bank of Nigeria Holdings Plc topped the value charts with ca ₦575.47 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.30/US$1.00 from ₦415.10/US$1.00, the previous day.
Global crude oil prices surged at the close of the week, after major oil producers at the recently concluded OPEC+ meeting decided to adhere to production plans of a gradual increase despite pressures from the United States to top crude supply. Thus, Brent Crude oil price rose ca 1.60% day-on-day to settle at US$81.83pb, while WTI gained ca 1.99% to US$80.31pb, as at report time. Spot Gold gained ca 0.47% day-on-day to settle at US$1,802.00 per ounce as at report time.