FIXED INCOME MARKET

Interbank system liquidity opened the day with a credit balance of ca ₦19.53 billion, higher than yesterday’s deficit of ca -₦81.86 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 14.67% and 14.83% respectively from 14.83% and 15.00%, recorded the previous day.

Treasury Bills

The NTB secondary market traded on a muted note, as market players stayed on the sidelines in anticipation of the outcome of the NTB auction, where c.N151bn was offered across the usual tenors. Overall, the average rate was relatively unchanged to settle at 7.53%.

Bonds

The FGN bonds market endured a quiet theme, albeit with a bearish undertone, as offer yields continued to trend higher amid weak demand due to illiquidity. However, mild interest was seen on 2029s and 2050s, but executed trade volumes were low. Overall, the average yield closed c.5bps higher day-on-day, settling at 12.77%.

Eurobonds

The Eurobond space witnessed mixed sentiments, as the early selling interest across the SSAs turned bullish after July’s US CPI report printed at 8.50%, lower than the market estimate of 8.70% and June CPI of 9.10%. Overall, the average yield across the Nigerian sovereign curve dipped by 3bps to settle at 10.47%.

Equities

The domestic bourse closed trading activities in the green, with buy-interest on stocks like Dangote Cement Plc (+9.96%), International Breweries Plc (+5.00%), and Zenith Bank Plc (+0.94%) respectively. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.47% day-on-day to settle at 50,075.47pts, while year-to-date returns extended to +17.23%.

The NGX Industrial, Banking, Consumer Goods, and Oil & Gas indices gained ca 4.35%, 0.42%, 0.33%, and 0.06%, day-on-day, respectively.

Jaiz Bank Plc led the volume chart with ca 115.13 million units while First Bank of Nigeria Holdings Plc topped the value charts with ca ₦431.50 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦429.00/US$1.00 from ₦428.75/US$1.00, recorded the previous day.

Commodities

Global crude oil prices declined today, on the back of industry reports which showed that the U.S. crude oil stockpiles and fuel inventories rose ca 2.20 million barrels signaling a slowdown in demand. Brent Crude Oil price dipped ca 0.67% day-on-day to settle at US$95.66pb, while WTI lost ca 0.69% day-on-day to settle at US$89.88pb as at report time. Spot Gold gained ca 0.20% day-on-day to close at US$1,815.90 per ounce as of report time.

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