FIXED INCOME MARKET
Money Markets

Interbank system liquidity tapered further today, opening with a deficit balance of ca -₦309.40 billion significantly lower than yesterday’s balance of ca -₦1.25 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 7.50% and 8.00% from 14.00% and 14.25%, respectively the previous day.

Treasury Bills

The NTB secondary market traded on a muted note, with tepid activity seen across the board. There was mild interest on the May CBN special bills at 6.30% levels, but trades executed remain few and far between. Overall, the average rate stayed stable, day-on-day, at 4.33%.

Bonds

The FGN bonds secondary market ended trading activities on mixed sentiments, albeit with a bearish trace. Improved offers were seen on the 2037s and 2050s, while sizable demand was observed on the 2045s. Overall, the average yield rose ca 3bps, day-on-day at 11.89%.

The major highlight of today’s activity in the domestic fixed income space was the Debt Management Office (DMO) decision to allow an upward rate review of the FGN Sukuk 2031 bond to 13.00% and an extension of the closure date for subscription to December 23rd, 2021 to enable more participation from investors. 

Eurobonds

The Eurobonds space witnessed a bullish stance, with improved buying sentiments seen across the sovereign curve. Overall, the average yield dipped by ca 10bps, day-on-day to 7.34%.

Equities

The domestic bourse sustained bearish sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.03% day-on-day to close at 42,230.48pts, while year-to-date returns further reduced to +4.87%. This can be attributed to the price decline in bellwethers like First Bank of Nigeria Holdings Plc (-2.50%), Zenith Bank Plc (-0.82%), and MTN Nigeria Communications Plc (-0.44%), respectively.

The NSE Consumer Goods Index lost ca 0.02%, while the NSE Oil & Gas, Banking, and Industrial Goods indices gained ca 1.10%, 0.52% and 0.13% day-on-day, respectively.

UACN Plc topped both the volume and value charts with ca 64.95 million units traded at ca ₦617.02 million.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.73/US$1.00 from ₦415.10/US$1.00, the previous day.

Commodities

Global crude oil prices remain relatively stable today, as the surging cases of the Omicron coronavirus variant might be contained by newly imposed travel restrictions. Thus, Brent Crude oil price rose ca 0.28% day-on-day to settle at US$75.50pb, while WTI also gained ca 0.29% to US$72.97 as at report time. Spot Gold gained ca 0.25% day-on-day to settle at US$1,806.70 per ounce as at report time.

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