FIXED INCOME MARKET
Interbank system liquidity tapered further to open with a credit balance of ca ₦201.53 billion, lower than yesterday’s balance of ca ₦260.97 billion. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 14.00% and 14.75% from 3.50% and 4.25% respectively, due to the funding pressure from the Retail FX auction that held today.
The NTB secondary market sustained its quiet stance, aided by wide bid/ask spreads observed across the board. Investors remain focused on next week’s auction, with very few trades executed on the CBN special bills at 5.50% levels. Overall, the average rates stayed flat, day-on-day, at 4.47%.
The FGN bonds secondary market traded sideways, albeit with a quiet stance. Buy interest was seen across the curve, particularly on the 2023s, 2025s, 2026s, and 2050s while moderate selloff was observed on the 2028s. Overall, the average yield stayed relatively stable, day-on-day, at 11.90%.
Mixed trading sentiments were witnessed in the Eurobonds space today, with minimal activity seen across the sovereign curve. Overall, the average yield remained stable day-on-day, at 6.95%.
The domestic bourse closed the week on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.57% day-on-day to close at 43,854.42pts, while year-to-date returns extended to +2.66%. This performance was largely due to keen interest in stocks such as BUA Foods Plc (+9.92%), United Capital Plc (+6.37%), and First Bank of Nigeria Holdings Plc (+3.04%).
The NSE Oil & Gas, Banking, Industrial, and Consumer Goods indices gained ca 0.98%, 0.44%, 0.26% and 0.19% day-on-day, respectively.
BUA Foods Plc topped both the volume and value charts with ca 204.60 million units traded at ca ₦10.06 billion.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦416.00/US$1.00 from ₦416.25/US$1.00, the previous day.
Global crude prices steadied, albeit on track for their biggest weekly gains since mid-December as the political unrest in Kazakhstan and outages in Libya spurred concerns on supply. Thus, Brent Crude oil price lost ca 0.13% day-on-day to settle at US$81.88pb, while WTI also dipped ca 0.50% to US$79.09 as at report time. Spot Gold gained ca 0.11% day-on-day to settle at US$1,790.10per ounce as at report time.