FIXED INCOME MARKET
Interbank system liquidity retracted to open with a deficit balance of ca -₦24.36 billion, lower than yesterday’s opening of ca ₦77.59 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 11.25% and 11.75% from 10.00% and 10.50% respectively, the previous day.
The NTB secondary market traded sideways today, with buying interest seen on maturities at the short end of the NTB curve, while moderate offers were observed on the CBN’s special bill papers. Overall, the average rate remained stable, day-on-day at 4.34%.
The FGN bonds secondary market closed the week on a relatively quiet note, with very few trades executed across the curve. Pockets of trades were skewed towards the 2026s and 2037s at 11.60% and 13.00% levels. Overall, the average yield stayed relatively flat, day-on-day at 11.89%.
The Eurobonds space witnessed a bearish session closing the week, with selloff activities seen across the sovereign curve. Overall, the average yield rose by ca 3bps, day-on-day to 7.34%.
The domestic bourse closed the week on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.20% day-on-day to close at 42,353.31pts, while year-to-date returns extended to +5.17%. Buying interests were observed on in Bellwethers like Dangote Cement Plc (+1.19%), Access Bank Plc (+0.56%), and First Bank of Nigeria Holdings Plc (+0.42%), respectively.
The NSE Industrial Goods and Consumer Goods Indices gained ca 0.62% and 0.28%, while the NSE Banking and Oil & Gas indices lost ca 0.49% and 0.11% day-on-day, respectively.
International Breweries Plc led the volume chart with ca 51.79 million units while UACN Plc topped the value charts with ca ₦600.91 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.07/US$1.00 from ₦415.05/US$1.00, the previous day.
Global crude oil prices declined today, as surging cases of the Omicron Coronavirus variant dampen investors’ sentiments and raise concerns on fuel demand. Thus, Brent Crude oil price dipped ca 1.80% day-on-day to settle at US$73.67pb, while WTI also lost ca 1.93% to US$70.98 as at report time. Spot Gold rose ca 0.41% day-on-day to settle at US$1,805.50 per ounce as at report time.