FIXED INCOME MARKET
Although Interbank system liquidity opened with a higher balance of ₦453.63 billion today against ₦281.53 billion, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended slightly higher to 1.00% and 1.25% from 0.50% and 1.00% respectively. We believe the increase in rates could have been driven by the CRR debits floated by the Apex bank today.
The NTB secondary market closed the week on a tepid note, albeit with a bearish undertone. However, few trades were executed mostly at the long end of the curve at c.5.10%. Overall, the average rate rose ca 3bps day-on-day, to settle at 4.34%.
The FGN bonds secondary market ended the week on a mixed to bearish note, buoyed by month-end profit taking activity. Major offers were seen on select maturities – 26s, 28s, 36s, 49s, and 50s, respectively. Overall, the average yield inched ca 3bps higher across the curve.
The Nigerian Eurobonds traded slightly bearish to end the week, with mild sell-offs witnessed across the yield curve. Overall, the average yield increased by ca 8bps day-on-day at 7.24%.
The domestic bourse reversed some of previous day’s losses to end the week with positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.43% day-on-day to settle at 46,205.05pts, while year-to-date return rose to +8.17%. This performance was largely due to price appreciation in Zenith Bank Plc (+0.98%), Guaranty Trust Holding Company Plc (+0.59%) and Seplat Petroleum Development Company Plc (+0.51%).
The NGX Banking, Oil and Gas and Consumer Goods indices gained ca 2.30%, 2.22% and 0.81% respectively, while the NGX Industrial Goods index shed ca 0.01% day-on-day.
First Bank of Nigeria Holdings Plc led the volume chart with ca 40.65 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.29 billion worth of trades.