FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a credit balance of ₦256.06 billion, compared to the previous day’s opening balance of ca ₦136.26 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended significantly higher due to funding for the Retail FX auction, to settle at 10.83% and 11.17% respectively from 5.25% and 5.75%, recorded yesterday.
The NTB secondary market saw mixed to bullish sentiments, with pockets of trades executed mostly at the far end of the curve as some investors took profit from auction winnings and others attempted to fill their lost bids. Overall, the average rates dipped ca 4bps, day-on-day at 3.28%.
The FGN bonds secondary market traded with mixed sentiments as well, with buyside activity centered on 2026s, 2027s, 2042s, and 2050s, while offers were mostly seen on 2024s, 2028s, and 2045s. Overall, the average yields remained unchanged due to weak traded volumes.
The Eurobond market saw some relief from the bearish trend seen in recent days. This was due to expectations that China’s central bank will ease policy to support growth, and renewed interest from real money players who are reinvesting coupon inflows. Overall, the average yield settled at 8.01%.
The domestic bourse closed the week on a positive note, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.30% day-on-day to close at 47,510.38pts, while market year-to-date returns extended to +11.22%. Buy interests were observed on bellwethers like Dangote Cement Plc (+2.38%) and Guaranty Trust Holding Company Plc (+0.41%), respectively.
The NGX Industrial Index gained ca 1.23% while NGX Banking and Consumer Goods indices lost ca 0.65% and 0.11%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Fidelity Bank Plc led the volume chart with ca 74.81 million units while Zenith Bank Plc topped the value charts with ca ₦777.99 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦417.50/US$1.00 from ₦416.67/US$1.00, printed the previous day.
Global oil prices fell today as investors evaluated reports from the US Energy Information Administration, which reported that the US crude stockpile increased by more than 9 million barrels last week, against concerns about supply disruptions. Thus, Brent Crude Oil price dipped ca 1.16% day-on-day to settle at US$107.52pb, while WTI also lost ca 1.30% day-on-day to settle at US$102.86pb as at report time. Spot Gold fell ca 0.79% day-on-day to close at US$1,969.00 per ounce as at report time.