FIXED INCOME MARKET
Interbank system liquidity opened the week with a deficit balance of ca ₦258.72 billion, worse than Friday’s opening deficit of ca ₦237.13 billion. Nevertheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower at 16.33% and 17.00% from 19.00% and 20.00% respectively, on Friday.
The NTB secondary market saw mixed sentiments today, demand was seen on the long dated maturities, particularly the 10 November 2022 at 5.60% level, while offers were seen on the December 2021 maturity and the CBN special bill at 5.65% levels. Overall, average rates remained relatively flat at 4.95% due to weak traded volumes.
The FGN bonds secondary market witnessed subdued activity, as investors looked to the final Monetary Policy Committee meeting of the year. The quiet stance was also heavily impacted by the liquidity constraint in the system. Some offers were seen on the 2026, 2035, 2036 and 2050 maturities as investors cherry-picked attractive yields. Overall, the average yield rose ca 6bps, day-on-day at 11.78%.
The Eurobonds space was largely bearish, with selloffs seen across the sovereign curve. Overall, average yield rose by ca 12bps, day-on-day to 7.15%.
The Nigerian Equities market ended the day with a positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.16% day-on-day to close at 43,266.27pts, while year-to-date performance rose to +7.44%. This positive performance was largely supported by gains in stocks such as First Bank of Nigeria Holdings Plc (+6.49%), Oando Plc (+5.97%) and Guaranty Trust Holding Company Plc (+0.20%).
The NSE Oil and Gas and Banking indices gained ca 1.27% and 0.76% respectively, while the NSE Industrial Goods and Consumer Goods indices lost ca 0.14% and 0.13% day-on-day.
Oando Plc led both the volume and value charts with ca 1.97 million units and ca ₦11.83 billion worth of trades.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.07/US$1.00 from ₦414.40/US$1.00.
Global crude oil prices recovered some losses, despite the increasing concerns of excess global crude oil supply as the Japanese Prime Minister Fumio Kishida considered releasing oil from its emergency stockpile. This comes as Austria imposed a national lockdown due to rising new cases of Coronavirus. Thus, Brent Crude oil price gained ca 0.08% day-on-day to settle at US$78.97pb, while WTI also gained ca 0.16% to US$76.05pb, as at report time. Spot Gold lost ca 0.61% day-on-day to settle at US$1,840.50 per ounce as at report time.