FIXED INCOME MARKET
Interbank system liquidity improved today (buoyed by OMO maturities worth ca ₦130 billion and coupon inflows – ca ₦65 billion), opening with a credit balance of ca ₦60.78 billion, higher than yesterday’s deficit balance of ₦34.01 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 12.50% and 13.00% from 14.50% and 15.25%, respectively.
The NTB secondary market was dominated by mixed sentiments, albeit with a bearish undertone, as buy-side investors continue to seek NTBs and CBN Special bills with attractive rates across board. Most sellers had to improve their offers due to liquidity constraints. Overall, the average rates rose by 7bps to 4.28%.
The FGN bonds secondary market sustained its bullish theme, with demand seen on the 23s, 24s, 26s, 28s, 37s, 49s, and 50s. However, mild sell interest was observed on the 27s, 29s, 35s, and 36s, respectively. Overall, the average yield was relatively stable, day-on-day to 11.49%.
The Eurobonds space was largely bearish, evident in the improved offers seen across the sovereign curve. Overall, the average yield gained ca 11bps day-on-day, at 7.87%.
The domestic bourse reversed losses from yesterday’s trading session, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.58% day-on-day to settle at 44,655.89pts, while year-to-date return extended to +4.54%. Buy interest was observed on bellwethers like Access Bank Plc (+2.11%), Guaranty Trust Holding Company Plc (+1.39%), and Zenith Bank Plc (+0.78%), respectively.
The NSE Banking, Industrial, Consumer Goods, and Oil & Gas indices gained ca 0.98%, 0.79%, 0.69%, and 0.25% day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 38.11 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦476.49 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at appreciated to ₦416.33/US$1.00.
Global crude oil prices reached new highs, amid the rising tension in the Middle East’s security climate as the outlook for crude supplies dampens, providing more support for an oil price spike. Thus, Brent Crude oil price rose ca 1.23% day-on-day to settle at US$87.23pb, while WTI also gained ca 1.77% to US$85.30pb as at report time. Spot Gold lost ca 0.07% day-on-day to settle at US$1,815.50per ounce as at report time.