FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity improved today, opening with a balance of ₦256.74 billion, higher than the previous day’s opening balance of ca ₦140.96 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 5.25% and 5.75% from 8.00% and 8.50% recorded the previous day.

Treasury Bills                                                                  

Bearish sentiment was sustained in the NTB secondary market, as players continue to show offers across the curve while bids remained scarce. Overall, average rate stayed relatively unchanged day-on-day at 3.23%, amid lack of activity.

Bonds

The FGN bonds secondary market was largely bearish as yields on the 2026, 2029, 2042 and 2050 traded on average, ca 15bps higher than yesterday’s close, with the 2029 and 2026 maturities seeing the most activity. Thus, average yield advanced ca 13bps across the yield curve.

Eurobonds

News of IEA and the US supporting the oil market with 60m and 180m barrels respectively, slightly helped cushion the bearish effect of the Fed’s minutes released late yesterday. Stocks and Eurobonds rebounded positively today, with keen interest seen in papers of oil producing countries. Nigeria, Angola and Ghana, enjoyed slight buy action across the curve, in between, Angola issued a 10-year Eurobond today with Initial Pricing Target (IPT) of 9.00% levels.

Equities

The domestic equities market closed the day in the red, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.48% day-on-day to close at 46,543.51pts, while year-to-date returns dropped to ca +8.96%. This was largely due to sell-side activity on stocks like United Africa Company of Nigeria Plc (-7.49%) and Access Holdings Plc (-0.51%).

The NGX Consumer Goods and Banking indices lost ca 0.19% and 0.12% respectively, the NGX Oil and Gas index gained ca 0.39%, while the NGX Industrial Goods index was unchanged day-on-day.

Fidelity Bank Plc led the volume chart with ca 44.43 million units while Zenith Bank Plc topped the value charts with ca ₦531.59 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.67/US$1.00, from ₦416.50/US$1.00 the previous day.

Commodities

Global crude oil prices rose today, on sustained optimism of tight global crude oil supply, despite the International Energy Administration’s (IEA) reports that consuming countries would release 60 million barrels on top of the 180 million-barrels release announced by the U.S last week. Thus, Brent Crude Oil price gained ca 0.32% day-on-day to settle at US$101.41pb, while WTI also gained ca 0.51% day-on-day to US$96.73pb as at report time. Spot Gold gained ca 0.76% day-on-day to settle at US$1,937.70 per ounce as at report time.

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