FIXED INCOME MARKET
Interbank system liquidity improved today on the back of OMO maturities worth ca ₦80.00 billion, opening with a balance of ca. ₦307.48 billion, higher than ₦139.91 billion yesterday. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to 2.00% and 2.25% from 7.50% and 8.00%, respectively.
The NTB secondary market traded sideways today, with the early buy interest seen on the long-dated NTB papers turning bearish by midday, as investors continued to gradually exited existing long positions. Overall, the average rate stayed flat day-on-day, to settle at 4.38%.
The FGN bonds secondary market also had a mixed to slightly bullish theme, with interest seen on the 2026s, 2036s, 2037s, 2042s, and 2050s at 11.20%, 12.75, 12.80%, 13.00%, and 13.05%, respectively. Thus, the average yield fell ca 6bps day-on-day, settling at 11.53% , due to the buy-side appeal witnessed at the belly of the yield curve.
Nigeria’s Eurobonds continue to witness a drop in yields across the curve, as investors still find her dollar-denominated sovereign securities attractive despite Moody’s recent negative rating – due to delay of Fuel Subsidy removal. Overall, the average yield reduced by ca 4bps day-on-day at 6.56%.
The domestic bourse closed the day with positive sentiments as demand seen on bellwethers drove the Nigerian Stock Exchange All Share Index (NGX ASI) 1.04% northwards day-on-day to settle at 47,111.21pts, while year-to-date return extended to +10.29%. The index performance continues to trend northwards amid investors’ optimism on the prospect of select stocks like Zenith Bank Plc (+4.99%), Access Bank Plc (+4.55%), Guaranty Trust Holding Company Plc (+4.09%), and MTN Nigeria Communications Plc (+2.53%) amongst others.
The NGX Oil and Gas, Banking, Industrial, and Consumer Goods indices gained ca 5.43%, 2.15%, 0.38%, and 0.19% day-on-day, respectively.
Transnational Corporation of Nigeria Plc led the volume chart with ca 32.11 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦587.32 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.75/US$1.00 from ₦415.33/US$1.00, the previous day.
Global crude oil prices observed erratic movements today, on the back of speculations that the Organization of the Petroleum Exporting Countries and allies (OPEC+) may go further with additional supply decisions at their meeting this week alongside market forecasts of a surge in U.S. crude inventories. Thus, Brent Crude oil price gained ca 0.45% day-on-day to settle at US$89.69pb, while WTI also rose by ca 0.40% to US$88.50pb as at report time. Spot Gold gained ca 0.56% day-on-day to settle at US$1,806.40 per ounce as at report time.