FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦77.59 billion, a slight improvement from yesterday’s deficit balance of ca -₦65.10 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 10.00% and 10.50% from 13.00% and 13.50% respectively, the previous day.
The NTB secondary market traded on a quiet note with demand skewed to the newly issued 1-year NTB paper and CBN special bills. Overall, the average rates remained unchanged, with very few trades executed due to the scarce offers across the NTB curve.
The FGN bonds secondary market was relatively calm today, albeit with notable interest seen predominantly on long-dated maturities, particularly on the 2037s and 2049s. Overall, with only a handful of trades executed across the curve, the average yield remained stable, day-on-day at 11.89%.
Bullish sentiments dominated the Eurobond space, as investors’ weigh on the U.S. Federal Reserve decisions on tapering bond purchases and 2022 rate hike projections. Overall, the average yield dipped ca 2bps day-on-day at 7.30%.
The domestic bourse erased the previous day’s gains, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.21% day-on-day, to close at 42,270.23pts, while the market’s year-to-date returns trimmed to ca 4.97%. Profit-taking activities were observed on bellwether stocks such as Dangote Cement Plc (-1.18%) and First Bank of Nigeria Holdings Plc (-0.83%).
The NSE Industrial Goods Index lost ca 0.73%, while the NSE Oil & Gas, Banking, and Consumer Goods indices gained ca 0.54%, 0.45% and 0.11% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 79.14 million units traded at ca ₦955.87 million.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.05/US$1.00 from ₦414.25/US$1.00, the previous day.
Global crude oil prices rose as a reaction to the outcome of the US Federal Reserve meeting, offering crude and other risk assets a boost. Furthermore, published estimates from the United States Energy Information Administration (EIA) indicated that crude stockpiles in the United States dropped 4.6 million barrels, which also aided oil price movements. Thus, Brent Crude oil price rose ca 2.26% day-on-day to settle at US$75.55pb, while WTI also gained ca 2.78% to US$72.64 as at report time. Spot Gold rose ca 1.93% day-on-day to settle at US$1,798.50 per ounce as at report time.