FIXED INCOME MARKET
Interbank system liquidity improved slightly, opening with a deficit balance of ca ₦25.31 billion, better than previous day’s opening deficit balance of ca ₦50.95 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates rose to 15.75% and 16.25% from 15.50% and 15.75% respectively, the previous day.
The NTB secondary market had another quiet session, with mild interest seen on the October 2022 to November 2022 papers at 5.45% level, while offers were around 5.25% and 5.35% levels as investors take position ahead of tomorrow’s Primary Market Auction. Overall, average yields remained stable, day-on-day at 4.32%.
Bullish sentiments dominated the FGN bonds secondary market today, with demand seen on the 2036, 2045 and 2050 maturities at 13.00%, 12.30% and 13.27% levels respectively. Thus, average yield reduced by 7bps day-on-day at 11.55%.
The Eurobonds space was bullish today, some demand seen across the curve. Overall, average yield fell by ca 16bps day-on-day to 7.23%.
The domestic bourse closed the day in the green, after 6 consecutive days of decline, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.02% day-on-day to close at 42,018.92pts, while year-to-date performance rose to +4.34%. This was largely supported by gains in stocks such as Zenith Bank Plc (+2.13%) and Guaranty Trust Holding Company Plc (+0.84%).
The NSE Banking and Industrial Goods indices gained ca 1.13% and 0.29% respectively, while the NSE Consumer Goods and Oil and Gas indices lost ca 2.70% and 0.52% day-on-day.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 364.03 million units traded at ca ₦4.11 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.07/US$1.00 from ₦415.00/US$1.00, the previous day.
Global crude oil prices rose further, as the Iran nuclear talks reached an impasse, thereby delaying the return of Iranian crude. Thus, Brent Crude oil price gained ca 3.54% day-on-day to settle at US$75.69pb, while WTI also gained ca 4.13% to US$72.36 as at report time. Spot Gold gained ca 0.22% day-on-day to settle at US$1,783.30 per ounce as at report time.