FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a balance of ca ₦168.46 billion, better than the previous day’s opening balance of ca ₦76.66 billion. However, the FX retail auction conducted today drove Open Buy Back (OBB) and Overnight (ON) rates higher to 15.00% and 15.67% from 2.33% and 3.00% respectively, the previous day.
The NTB secondary market closed the week with bullish sentiments, with demand seen at the long-end of the yield curve between 5.50% and 5.60% levels. Overall, average rate lost ca 4bps at 4.72%.
The FGN bonds secondary market was relatively quiet today, albeit with a bearish tilt, as offers were seen on the 2036 and 2050 maturities. Average yields inched up by 6bps to 11.41%, due to improved offers across the belly and long end of the yield.
The Eurobonds space was largely bearish, with sell-offs seen across the yield curve. Overall, average yield gained by ca 20bps, day-on-day to 7.54%.
The Nigerian Equities market reversed some of previous day’s losses to end the week with a positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.46% day-on-day to close at 43,308.29pts, while year-to-date performance improved to +7.54%. This was largely due to gains in stocks such as Nigerian Breweries Plc (+3.13%), Access Bank Plc (+1.10%) and Zenith Bank Plc (+0.41%).
The NSE Consumer Goods, Banking, Oil and Gas and Industrial Goods indices lost ca 0.89%, 0.33%, 0.03% and 0.01% respectively, day-on-day.
First City Monument Bank Plc led the volume chart with ca 81.05 million units while Guaranty Trust Holding Company Plc topped the value chart with ca ₦738.32 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦415.07/US$1.00.
Global crude oil prices declined further , on reports of a new strain of the Coronavirus in Southern Africa. Thus, Brent Crude oil price lost ca 6.70% day-on-day to settle at US$76.75pb, while WTI also lost ca 7.50% to US$72.42pb, as at report time. Spot Gold gained ca 1.04% day-on-day to settle at US$1,801.10 per ounce as at report time.