FIXED INCOME MARKET
Interbank system liquidity weakened slightly to open with a balance of ca ₦403.99 billion, higher than previous day’s opening balance of ₦408.84 billion. Nevertheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to 1.50% and 2.00% from 2.67% and 3.33% respectively, the previous day.
Activity in the NTB secondary market was subdued today, as focus shifted to the Primary Market Auction (PMA). However, offers were ca 15bps lower than the previous day’s on the expectation that the 1-yr paper would close much lower than the last stop rate of 6.99%. Overall, the average rate dipped ca 8bps, day-on-day to 5.05%.
The FGN bonds secondary market traded with bullish sentiments today, with interest seen on the 2037 and 2049 maturities at 12.90%, while offers were ca 10bps wide. Overall, the average yield lost ca 6bps, day-on-day at 11.32%.
The Eurobonds space saw bearish sentiments today, with sell-side activity witnessed across the curve. Overall, the average yield rose by ca 4bps, day-on-day to 6.73%.
The domestic equities market reversed some of previous day’s gains, with the Nigerian Stock Exchange All Share Index (NSE ASI) losing 0.05% day-on-day to close at 43,707.30pts, while year-to-date returns dropped to 8.53%. This was due to losses in Zenith Bank Plc (-1.23%) and Access Bank Plc (-1.07%).
The NSE Banking, Industrial Goods and Oil and Gas indices lost ca 0.97%, 0.25% and 0.24% respectively, while the NSE Consumer Goods index gained ca 0.12% day-on-day.
Flour Mills of Nigeria Plc led the volume chart with ca 50.60 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.49 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.73/US$1.00 from ₦415.07/US$1.00, the previous day.
Global crude oil prices extended gains, on reports of a decline of 2.5 million barrels in U.S crude stock piles, against market analyst’s expectation of a 2.1 million barrels increase. Therefore, Brent Crude oil price rose ca 0.33% day-on-day to settle at US$85.06pb, while WTI gained ca 0.26% to US$84.35pb, as at report time. Spot Gold gained ca 1.36% day-on-day to settle at US$1,855.90 per ounce as at report time.