FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a balance of ca ₦73.51 billion, higher than previous day’s opening deficit of ca ₦91.55 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to 15.50% and 15.75% from 17.25% and 17.75% respectively.
The NTB secondary market traded bullish, with major buy-side activity skewed to the long end NTBs (particularly, 27-Oct-22) at 5.40% levels. Overall, average rate dipped by 8bps to 4.67%.
Activity in the FGN bonds secondary market was bearish today, with improved offers seen at the long-end of the curve, most especially the 2037 and 2050 maturities at 13.07% and 13.40% respectively. Thus, average yield inched up by 7bps day-on-day to 11.41%.
The Eurobonds space was bullish today, with demand seen across the curve. Overall, average yield dropped by ca 7bps day-on-day to 7.59%.
The domestic bourse extended its losses, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 1.81% day-on-day to close at 42,463.16pts, while year-to-date performance declined to +5.44%. This was largely due to losses in stocks such as MTN Nigeria Communication Plc (-10.00%) and Access Bank Plc (-5.26%).
The NSE Banking, Consumer Goods and Oil and Gas indices lost ca 1.15%, 0.14% and 0.12% respectively, while the NSE Industrial index gained 0.04%, day-on-day.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 134.00 million units traded at ca ₦1.57 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦415.07/US$1.00.
Global crude oil prices rose today, despite concerns of the Omicron, the new variant of the Coronavirus, as investors await the result of the Organization of Petroleum Exporting Countries (OPEC+) and allies meeting scheduled to hold Tomorrow. Thus, Brent Crude oil price gained ca 3.68% day-on-day to settle at US$71.78pb, while WTI also gained ca 3.67% to US$68.61pb, as at report time. Spot Gold gained ca 0.75% day-on-day to settle at US$1,789.60 per ounce as at report time.