FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity improved significantly to open with a balance of ca ₦449.22 billion, higher than Friday’s opening balance of ₦41.80 billion. As a result, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to 4.75% and 5.25% from 12.00% and 12.38% respectively, the previous day.

Treasury Bills                                                                   

The NTB secondary market traded on a bullish note, with major interest seen on the long-dated maturities, particularly the 25 August 2022 and 27 October NTB papers, around 6.50% levels. Overall, the average rate dipped ca 5bps, day-on-day to 5.26%.

Bonds  

The FGN bonds secondary market was relatively quiet today, albeit with a bullish tilt, as mild interest was seen on the 2023, 2028, 2037 and 2050 maturities at 9.30%, 12.25%, 12.89% and 13.17% respectively. Overall, the average yield lost ca 2bps, day-on-day at 11.30%.

Eurobonds

The Eurobonds space sustained bullish sentiment, with buying interest witnessed at the mid to long end of the sovereign curve. Overall, the average yield dipped by ca 18bps, day-on-day to 6.70%.

Equities

The domestic equities market opened the week with positive performance, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 2.93% day-on-day to close at 43,246.87pts, while year-to-date returns extended to 7.39%. This was due to gains in Airtel Africa Plc (+10.00%), MTN Nigeria Communications Plc (+9.62%) and First Bank of Nigeria Holdings Plc (+2.25%).

The NSE Consumer Goods and Industrial Goods indices gained ca 0.25% and 0.13% respectively, while the NSE Oil and Gas and Banking indices lost ca 0.57% and 0.09% day-on-day.

Sterling Bank Plc led the volume chart with ca 81.23 million units while Zenith Bank Plc topped the value charts with ca ₦797.35 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦414.55/US$1.00 from ₦414.30/US$1.00, the previous day.

Commodities

Global crude oil prices continued to rally, as positive signs of global economic growth supported the outlook for energy demand. This also comes as U.S President, Joe Biden welcomed congressional passage of US$1 trillion infrastructural bill, expected to boost growth and fuel demand. Thus, Brent Crude oil price rose ca 0.29% day-on-day to settle at US$82.98pb, while WTI gained ca 0.16% to US$81.45pb, as at report time. Spot Gold gained ca 0.40% day-on-day to settle at US$1,824.20 per ounce as at report time.

Leave a Reply