FIXED INCOME MARKET
Although Interbank system liquidity slightly improved with a credit balance of ca ₦380.78 billion as against the previous day’s opening balance of ca ₦326.39 billion, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher due to the retail FX auction, to 9.00% and 9.67% from 4.75% and 5.25% respectively.
Despite a plethora of improved offers across the curve, the NTB secondary market ended the week on a quiet note with very few deals executed. Overall, the average rates stayed relatively flat, day-on-day to settle at 3.25%.
Today’s activities in the bond market were dominated by buy-side activity in the 2042s, with bids ranging from 12.63% to 12.65% and while offers bridged across 12.55% to 12.60% levels. There was also some interest seen on the 2026s, as market players took positions ahead of Monday’s auction. Overall, the average yield dipped by 3bps, day-on-day to close at 10.53%.
The Eurobond market saw a rebound across the SSA curve, owing to progress in talks between Russia and Ukraine, as well as improved real money interest. The NIG 2029 bond dipped c.15bps from its issue yield of 8.375%, as investors preferred its attractive premium trading level compared to the surrounding bond tenors, which traded at c.7.60%. Consequently, the average yield settled at 8.09%.
The domestic bourse closed the day on a bearish note, as sustained sell activity pushed market performance southward. The Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.15% day-on-day to close at 47,282.67pts, while market year-to-date returns extended to ca +10.69%. Sell action was seen in stocks like Access Bank Plc (-5.77%), BUA Foods Plc (-3.09%), and First Bank of Nigeria Holdings Plc (-0.42%), respectively.
The NGX Consumer Goods Index gained ca 0.07% while NGX Banking and Oil & Gas indices lost ca 0.63% and 0.23%, day-on-day, respectively. The NGX Industrial Index closed flat.
E-tranzact International Plc led both the volume and value charts with ca 331.13 million units, traded at 880.81 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.50/US$1.00 from ₦416.67/US$1.00, the previous day.
Global crude oil prices stayed volatile as market sentiments remained influenced by concerns of tight crude supply, stalled nuclear talks with Iran, depleted oil stockpiles, and worries about a surge of COVID-19 cases in China. Thus, Brent Crude Oil price rose ca 0.26% day-on-day to settle at US$106.97pb, while WTI also gained ca 1.00% to US$104.10pb as at report time. Spot Gold lost ca 0.81% day-on-day to settle at US$1,927.40 per ounce as at report time.