FIXED INCOME MARKET
Interbank system liquidity improved slightly, opening with a balance of ca ₦19.68 billion, better than the previous day’s opening deficit balance of ca ₦74.85 billion. Thus, the Overnight Policy Rate (OPR) held steady at 13.67%, while the Overnight (ON) rate trended lower to settle at 14.00% from 14.08%, recorded the previous day.
Activity in the NTB secondary market closed the week on a quiet note. However, there were few bids seen on the newly issued 1-year paper at 6.45% but offers were c.20bps wide. Therefore, the average rate held steady day-on-day, closing at 3.78%.
The FGN Bonds secondary market reflected a mixed to bullish theme, with most of the demand skewed to 2024s, 2025s, 2026s, 2027s, 2032s, 2042s and 2050s, thus, pushing the narrative that the early bearish theme in the last two days seems to have faded. Consequently, the average yield dipped by ca 8bps, day-on-day across the curve, to settle at 11.64%.
The Eurobond market closed the week with positive sentiment in the SSA space, as buyside activity was recorded across Nigeria, Angola, and some Ghana papers. However, there was an early sell-off in Egypt long-end following yesterday’s Moody downgrade, but it was short-lived, as investors later grabbed the attractive offers, ensuring c.1.2ppts upward repricing. Overall, the average yield settled at 10.78%.
The domestic bourse ended trading activities on a positive note, with the market’s year-to-date returns positioned at ca +26.61%. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.76% day-on-day, to close at 54,085.30pts, with buying interests observed on bellwethers like Airtel Africa Plc (+9.89%), Access Holdings Plc (+0.51%), and Zenith Bank Plc (+0.21%), respectively.
The NGX Consumer Goods Index lost ca 2.41% while the NGX Banking, Oil & Gas, and Industrial Indices gained 0.48%, 0.24% and 0.01% day-on-day, respectively.
Flourmills Nigeria Plc led the volume chart with ca 21.48 million units while Airtel Africa Plc topped the value charts with ca ₦2.34 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦419.50/US$1.00 from ₦418.88/US$1.00, recorded the previous day.
Global crude oil prices rose today, amid supply concerns following increased gasoline use and renewed declines in U.S. crude inventories. Brent Crude Oil price gained ca 1.36% day-on-day to settle at US$119.00pb, while WTI also rose ca 0.54% day-on-day to settle at US$114.71pb as at report time. Spot Gold gained ca 0.25% day-on-day to close at US$1,852.20 per ounce as at report time.