FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a balance of ₦26.81 billion, from previous day’s opening deficit balance of ca ₦209.55 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rate trended lower to 5.67% and 6.17% from 12.38% and 12.50% respectively, the previous day.
The NTB secondary market sustained its bearish stance to close the week, with improved offers seen on the long dated maturities at 4.00% to 4.05% levels as players sought to create liquidity amid funding needs. Overall, the average rate inched up by 5bps across the yield curve to settle at 3.17%.
The FGN bonds secondary market also ended the week bearish, with better offers seen on the 2028, 2035 and 2042 maturities. However, buyers remained scarce amid tight system liquidity. Consequently, the average yield rose by ca 6bps across the curve, to settle at 10.69%.
The SSA curve witnessed renewed interest across the curve, with buyside activity seen particularly in Nigeria and Ghana papers. The bullish activity seen in the Ghana curve is bolstered by increased optimism of an improvement in Ghana’s economic data, on the back of proposed refined fiscal measures. Overall, the average yield dipped by ca 11bps across the Nigerian Eurobond curve to settle at 8.07%.
Following price appreciation in bellwethers such as Zenith Bank Plc (+1.13%) and Guaranty Trust Holding Company Plc (+0.65%), the domestic equities market closed the day marginally higher, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained ca 0.01% day-on-day to close at 46,964.23pts, while market year-to-date returns closed at ca +9.94%.
The NGX Banking and Consumer Goods indices gained ca 0.48% and 0.07% respectively, while the NGX Oil and Gas and Industrial Goods indices traded flat, day-on-day.
Fidelity Bank Plc topped the volume chart with ca 62.69 million units, while Nestle Plc led the value chart with ca 1.95 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.33/US$1.00 from ₦416.00/US$1.00, the previous day.
Global crude oil prices depreciated today, on increasing optimism of an ease in global crude oil supply bottleneck, following reports that crude oil exports from Kazakhstan’s Caspian Pipeline Consortium terminal will resume operations soon. Thus, Brent Crude Oil price lost ca 1.53% day-on-day to settle at US$117.23pb, while WTI also lost ca 1.87% day-on-day to US$110.24pb as at report time. Spot Gold lost ca 0.74% day-on-day to settle at US$1,947.30 per ounce as at report time.