FIXED INCOME MARKET
Interbank system liquidity improved significantly today, to open with a credit balance of ca ₦350.48 billion higher than yesterday’s balance of ca -₦309.40 billion due to FAAC inflows. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher because of the FX retail auction to settle at 12.00% and 12.50% from 7.50% and 8.00%, respectively the previous day.
The NTB secondary market was devoid of activity at the close of the week, as market players stayed on the sidelines in anticipation of next week’s NTB auction. However, very few trades were executed on CBN’s Special bills at 6.30% levels amid dearth of liquidity. Overall, the average rate stayed stable, day-on-day, at 4.33%.
The FGN bonds secondary market ended the week on mixed sentiments, with slight buying interests seen on the 2024s and 2035s while moderate selloffs were observed on the 2037s, 2049s, and 2050s, respectively. Overall, the average yield rose ca 3bps, day-on-day at 11.88%.
The Eurobonds space traded on a mixed to bullish tone, with pockets of trades seen across the sovereign curve. Overall, the average yield dipped by ca 1bp, day-on-day to 7.34%.
The domestic bourse closed the last trading day of the week in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.08% day-on-day to close at 42,262.85pts, while year-to-date returns extended to +4.95%. This was largely due to buy interests in stocks like Union Bank Nig. Plc (+9.90%) and Zenith Bank Plc (+0.83%), respectively.
The NSE Banking, Industrial Goods, and Consumer Goods indices gained ca 0.73%, 0.19%, and 0.13% day-on-day, respectively. The NSE Oil & Gas index closed flat.
Transnational Corporation of Nigeria Plc led the volume chart with ca 11.55 million units while Zenith Bank Plc topped the value charts with ca ₦143.02 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.10/US$1.00 from ₦414.73/US$1.00, the previous day.
Global crude oil prices dropped slightly following a three-day surge due to holiday activity and market concerns over the impact of the omicron coronavirus strain on fuel demand. Thus, Brent Crude oil price dipped ca 1.29% day-on-day to settle at US$75.86pb, while WTI gained ca 1.37% to US$73.76 as at report time. Spot Gold gained ca 0.44% day-on-day to settle at US$1,810.10 per ounce as at report time.