FIXED INCOME MARKET
Today’s interbank system liquidity increased slightly, with a balance of ₦467.99 billion, up from yesterday’s balance of ca ₦307.48 billion. As a result, the Overnight Policy Rate (OPR) and Overnight (ON) rates fell to 1.00% and 1.25%, respectively, from 2.00% and 2.25%.
The NTB secondary market traded bullish as players deployed idle cash to short-dated securities amid CRR fears, with most of the activity centered on CBN Special bills and long-dated NTB papers at 4.40% and 5.10%, respectively. Overall, the average rate reduced by ca 4bps day-on-day, to settle at 4.26%.
The FGN bonds secondary market endured a mixed theme, with traction seen on the 2026s, 2035s, 2036s, and 2037s, respectively. Overall, the average yield stayed flat day-on-day at 11.62%.
Bullish sentiments dominated Nigeria’s Eurobonds with buy interest seen across board. Overall, the average yield dipped by ca 15bps day-on-day at 7.00%.
The domestic bourse reversed its positive trend, with profit-taking activities observed from investors. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.38% day-on-day to settle at 46,930.66pts, while year-to-date return trimmed to +9.87%. Sell action was seen on bellwethers like United Bank for Africa Plc (-3.41%), Zenith Bank Plc (-3.11%), Access Bank Plc (-1.45%), MTN Nigeria Communications Plc (-1.23%), and Guaranty Trust Holding Company Plc (-1.07%), respectively.
The NGX Oil and Gas index gained ca 0.62% while NGX Banking and Industrial indices lost ca 1.39% and 0.17% day-on-day, respectively. The NGX Consumer Goods closed flat.
Fidelity Bank Plc led the volume chart with ca 47.74 million units while Seplat Energy Plc topped the value charts with ca ₦964.67 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦416.25/US$1.00 from ₦415.75/US$1.00, the previous day.
The Organization of the Petroleum Exporting Countries and allies (OPEC+) decided to ramp up production by 400,000 barrels in crude output, adhering to the group’s objective of gradually increasing production levels, even as prices trade at record highs amid geopolitical concerns. Brent Crude oil price lost ca 0.55% day-on-day to settle at US$88.67pb, while WTI also dipped by ca 0.78% to US$87.51pb as at report time. Spot Gold gained ca 0.43% day-on-day to settle at US$1,809.20 per ounce as at report time.