FIXED INCOME MARKET
Interbank system liquidity opened the day with a credit balance of ca ₦37.29 billion, albeit lower than yesterday’s balance of ₦60.78 billion. Thus, the Overnight policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 13.25% and 13.50% from 12.50% and 13.00% respectively.
The NTB secondary market was relatively quiet, albeit dominated by mixed sentiments as sell-side market players improved their offers while buy-side speculators snapped up bargains for select NTB papers across board. Overall, the average rates remained stable at 4.28%.
The FGN bonds secondary market endured a quiet theme, as market players stayed on the sideline, anticipating the outcome of the bond auction. However, pockets of demand were observed on the 24s, 26s, 49s, and 50s, respectively. Overall, the average yield reduced by ca 4bps, day-on-day to 11.36%.
The Eurobonds space witnessed a bullish stance, with improved buy interest seen across board. Overall, the average yield dipped ca 12bps day-on-day, at 7.75%.
The domestic bourse sustained positive sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.73% day-on-day to settle at 45,430.14pts, while year-to-date return extended to +6.35%. This performance leaned heavily to bargain hunting on stocks like Airtel Africa Plc (+10.00%), Seplat Energy Plc (+4.36%), Access Bank Plc (+0.52%), and Zenith Bank Plc (+0.39%), respectively.
The NGX Oil & Gas and Banking indices gained ca 2.21% and 0.50% while the NGX Consumer Goods Index lost ca 0.02%, day-on-day, respectively. The NGX Industrial Index closed flat.
Guaranty Trust Holding Company Plc led the volume chart with ca 25.46 million units while Dangote Cement Plc topped the value charts with ca ₦6.48 billion 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 sustained a positive trajectory, as an outage on a pipeline from Iraq to Turkey raised further concerns about tight supply amid the rising political tension in the Middle East. Thus, Brent Crude oil price rose ca 1.36% day-on-day to settle at US$88.70pb, while WTI also gained ca 2.08% to US$87.21pb as at report time. Spot Gold gained ca 1.41% day-on-day to settle at US$1,838.00 per ounce as at report time.