FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity improved slightly, opening with a balance of ca ₦5.25 billion, better than previous day’s opening deficit balance of ca ₦25.31 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates were maintained at 15.75% and 16.25% respectively.

Treasury Bills                                                                   

The NTB secondary market had another quiet session, as investors focused on the Primary Market Auction conducted today. Few offers were seen on the long-end of the yield curve at 5.35% levels, however bids remained scarce. Thus, average yields remained stable, day-on-day at 4.39%.

Bonds  

The FGN bonds market was mixed to bullish, with the 36s, 45s and 50s seeing the most traction. Most trades were executed at 12.98% and 13.20% on the 36s and 50s respectively, but bids on 45s were wide from offers, hence the weak traded volumes on that specific maturity. However, the 28s and 37s saw some trades consummated at 12.40% and 13.00% respectively, as sellers improved offers to match the available bids. Consequently, average yield reduced by 9bps day-on-day.

Eurobonds

The Eurobonds space was bullish today, some demand seen across the curve. Overall, average yield fell by ca 7bps day-on-day to 7.16%.

Equities

The domestic bourse sustained its positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.99% day-on-day to close at 42,435.16pts, while year-to-date performance rose to +5.37%. This was largely supported by gains in stocks such as MTN Nigeria Communications Plc (+4.49%), Seplat Petroleum Development Company Plc (+2.46%) and Guaranty Trust Holding Company Plc (+0.62%).

The NSE Banking, Oil and Gas, Consumer Goods and Industrial Goods indices gained 1.83%, 1.14%, 0.64% and 0.10% respectively, day-on-day.

First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 441.93 million units traded at ca ₦5.04 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦415.07/US$1.00.

Commodities

Global crude oil prices declined today, on rising concern of the impact of Omicron, the new Coronavirus variant, on global crude oil demand. Thus, Brent Crude oil price lost ca 1.03% day-on-day to settle at US$74.66pb, while WTI also lost ca 1.25% to US$71.17 as at report time. Spot Gold gained ca 0.30% day-on-day to settle at US$1,789.60 per ounce as at report time.

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