FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦48.18 billion, a slight improvement from yesterday’s opening balance of ca ₦40.67 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 12.96% and 13.50% from 12.33% and 12.50%, respectively, the previous day.
The NTB secondary market endured a quiet theme, as market players focused on the Primary Market Auction (PMA) held today. However, there were few trades executed on July and August CBN special bills at sub 3.00% levels. Thus, the average rate remained unchanged day-on-day, closing at 3.78%.
The FGN bonds secondary market traded mixed sentiments, albeit with a bearish tilt, following yesterday’s surprise benchmark rate movement. The short end of the curve (2025s to 2029s) witnessed mild buy-side interest, while 2042s, 2049s, and 2050s saw improved offers at c.13.20%, 13.10%, and 13.13%, respectively. Overall, the average yield inched up by 10bps, day-on-day, to settle at 11.48%.
The SSA Eurobond market opened stronger after slightly softening in yesterday’s session. There were significant bid interest seen in Nigeria, Angola and front-end Ghana papers, due to a good mix of short covering and retail interest. Overall, the average yield settled at 11.45%.
The domestic bourse closed the day on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.24% day-on-day to close at 52,591.41pts, while year-to-date returns extended to +23.12%. Today’s market performance was boosted by a significant interest in Airtel Africa Plc (+9.39%).
The NGX Banking, Consumer Goods, Oil & Gas, and Industrial indices lost ca 2.13%, 1.33%, 0.76%, and 0.40% day-on-day, respectively.
UACN Plc led the volume chart with ca 48.19 million units while Airtel Africa Plc topped the value chart with ca ₦647.70 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦418.00/US$1.00 from ₦419.00/US$1.00, recorded the previous day.
Global crude oil prices surged today, aided by tight supplies, and as U.S. refiners boosted processing activity to its highest level since before the coronavirus outbreak began. Brent Crude Oil price gained ca 0.27% day-on-day to settle at US$113.87pb, while WTI also rose ca 0.24% day-on-day to settle at US$110.01pb as at report time. Spot Gold dipped ca 0.97% day-on-day to close at US$1,847.10 per ounce as at report time.