FIXED INCOME MARKET
Interbank system liquidity opened the day with a deficit balance of ca -₦2.23 billion, lower than yesterday’s opening balance of ca ₦185.14 billion due to the funding provisions for the NTB and Sukuk bond auction debits. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 10.00% and 11.25% from 11.00% and 11.50% respectively.
The NTB secondary market was slightly bullish today, with most of the trading activity skewed to the CBN Special bills – February, April, and May 2022 papers around 5.50% and 5.80% levels. Overall, the average rate dipped ca 4bps, day-on-day, at 4.33%.
Mixed to bearish sentiments dominated the FGN bond secondary market today, with improved offers seen across the board, particularly for the 2049s, which traded above 13.25% levels. There was also little interest from local investors in the 2024s, 2027s, and 2037s, respectively. However, the number of trades executed was sparse due to the wide spreads. Overall, the average yield rose by ca 3bps, day-on-day, to 11.87%.
The Eurobonds space witnessed an active session, as investors continue to cherry-pick sovereign papers with attractive yields. Overall, the average yield dipped by ca 5bps, day-on-day to 7.21%.
The domestic bourse observed a relatively quiet session, albeit with a positive trace. The Nigerian Stock Exchange All Share Index (NGX ASI) marginally gained 0.01% day-on-day to close at 41,813.27pts, while year-to-date returns extended to +3.83%. Buying interests were seen on bellwethers like Access Bank Plc (+1.11%) and Zenith Bank Plc (+1.01%), respectively.
The NSE Banking Index gained ca 0.52%, while the NSE Oil & Gas, Consumer Goods, and Industrial Goods indices lost ca 0.78%, 0.27% and 0.06% day-on-day, respectively.
Jaiz Bank Plc led the volume chart with ca 97.76 million units while Access Bank Plc topped the value charts with ca ₦308.38 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦415.00/US$1.00.
Global crude prices extended gains today, boosted by printed data that suggested that U.S. crude demand is holding up well despite the surge in Omicron coronavirus infections. Thus, Brent Crude oil price rose ca 0.04% day-on-day to settle at US$79.26pb, while WTI also gained ca 0.37% to US$76.83 as at report time. Spot Gold rose ca 0.08% day-on-day to settle at US$1,807.30 per ounce as at report time.