FIXED INCOME MARKET
The Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 15.00% and 15.25% from 11.00% and 11.50%, on the back of today’s retail FX auction and the Bond auction settlement.
The NTB secondary market closed the week slightly bullish, with demand for select NTB papers alongside the CBN special bills evident across board. Overall, the average rate dipped ca 6bps at 4.31%.
The FGN bonds secondary market ended the week with buy-side action seen across the 26s, 35s, 36s, 37s, and 50s. Investors continue to actively trade select maturities to position themselves ahead of the imminent FGN Bond Jan’22 maturity and coupon inflows. Overall, the average yield dropped ca 9bps, day-on-day to 11.79%.
The Eurobonds space witnessed sustained buying across various SSA securities, most especially the NGERIA 49s, GHANA 26s and 27s. Overall, the average yield dipped ca 23bps day-on-day, at 7.38%.
The domestic bourse sustained its northward movement to close the week. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.15% day-on-day to settle at 45,957.35pts, while year-to-date return extended to +7.59%. Positive investors’ sentiment continues to drive stock price appreciation on stocks like Seplat Energy Plc (+4.86%) and Guaranty Trust Holding Company Plc (+1.18%).
The NGX Oil & Gas and Consumer Goods indices gained ca 2.55% and 0.33% while the NGX Banking Index lost ca 0.11%, day-on-day, respectively. The NGX Industrial Index closed flat.
Transnational Corporation of Nigeria Plc led the volume chart with ca 35.68 million units while Seplat Energy Plc topped the value charts with ca ₦538.41 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦416.00/US$1.00 from ₦416.33/US$1.00.
Global crude oil prices fell today after reaching seven-year highs this week, as a surge in U.S. crude stockpiles spurred speculators to take profits from the rally. Thus, Brent Crude oil price dipped ca 1.69% day-on-day to settle at US$86.93pb, while WTI also lost ca 1.58% to US$84.20pb as at report time. Spot Gold dipped ca 0.40% day-on-day to settle at US$1,835.10 per ounce as at report time.