FIXED INCOME MARKET
Interbank system liquidity decreased today, opening with a balance of ca ₦25.49 billion, lower than the previous day’s opening balance of ca ₦115.62 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to 15.50% and 15.75% from 15.00% and 15.50% respectively the previous day.
The NTB secondary market closed the week with bullish sentiments, with demand seen on the long-dated papers, particularly the October 2022 to November 2022 maturities around 5.35% levels and the CBN special bill around 5.80% levels. Overall, average rate dropped by ca 6bps, day-on-day to 4.38%.
Sentiments in the FGN bonds secondary market was mixed today. Sell-side interest was seen across the mid to long end of the curve, with 2027, 2037 and 2050 maturities offered around 12.10%, 13.05% and 13.35% levels respectively. Demand was also seen on the short dated papers, 2023 and 2024 maturities, but offers were a few spreads shy of the bids. Thus, average yield stayed relatively flat day-on-day at 11.42%.
The Eurobonds space was bullish today, with demand seen across the curve. Overall, average yield dropped by ca 5bps day-on-day to 7.39%.
The domestic bourse continued to trend downwards, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.19% day-on-day to close at 42,167.91pts, while year-to-date performance declined to +4.71%. This was largely due to losses in stocks such as Guaranty Trust Holding Company Plc (-1.63%), MTN Nigeria Communication Plc (-1.30%) and Zenith Bank Plc (-0.21%).
The NSE Consumer Goods and Banking indices lost ca 0.09% and 0.06% respectively, the NSE Industrial Goods index gained 0.02%, while the NSE Oil and Gas index closed flat day-on-day.
Guaranty Trust Holding Company Plc led both the volume and value charts with ca 23.96 million units traded at ca ₦581.57 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.73/US$1.00 from ₦414.80/US$1.00, the previous day.
Global crude oil prices recorded gains today, as the Organization of Petroleum Exporting Countries (OPEC+) and allies decided to maintain plans to add 400,000 barrels to global production from January 2022. OPEC+, however indicated willingness to review supply policy at short notice if oil demand collapsed due to a rising number of Covid cases. Thus, Brent Crude oil price gained ca 3.33% day-on-day to settle at US$71.99pb, while WTI also gained ca 2.99% to US$68.43 as at report time. Spot Gold gained ca 0.35% day-on-day to settle at US$1,769.80 per ounce as at report time.