FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦279.30 billion, up from yesterday’s opening balance of ca ₦114.81 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended higher to settle at 16.17% and 16.50% from 14.83% and 15.33%, recorded the previous day.
The NTB secondary market closed the week bullish, with scanty offers unable to match the heavy demand witnessed across the mid to long dated papers. Overall, the average rate closed ca 10bps lower, day-on-day, to settle at 9.33%.
The FGN bonds market reflected a muted theme to close the week, albeit with subtle mixed interests recorded across the curve. Yield on 2037s dipped by c.10bps amid scarcity of offers, while there was an uptick in Ask yields across 2024s, 2025s, 2027s, 2032s and 2050s. Consequently, average yield closed c.3bps higher, day-on-day, to settle at 14.50%.
The bullish trend in the Eurobond space halted briefly at today’s session, with sideways trading recorded across Nigeria and Ghana curves, while Angola papers witnessed sustained buying trend amid support from strong technicals. Overall, the average yield across the Nigerian sovereign curve settled at 14.06%.
The domestic bourse closed today’s trading in red, with sell pressure observed on bellwethers like Dangote Cement Plc (-10.00%), Guaranty Trust Holding Company Plc (-0.56%), and MTN Nigeria Communications Plc (-0.05%). The Nigerian Stock Exchange All Share Index (NGX ASI) lost 1.60% day-on-day to settle at 43,912.64pts, while year-to-date return trimmed to +2.80%.
The NGX Consumer Goods Index gained ca 0.40% while the NGX Industrial and Banking Indices lost 4.83% and 0.22% day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Fidelity Bank Plc led the volume chart with ca 14.95 million units, while MTN Nigeria Communications Plc topped the value charts with ca ₦1.78 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦444.75/US$1.00 from ₦444.50/US$1.00, recorded the previous day.
Global oil prices dipped today, aided by China’s imposed new lockdown restrictions due to the upsurge in COVID-19 cases. Brent Crude Oil price lost ca 1.41% day-on-day to settle at US$95.59pb, while WTI dipped ca 1.37% day-on-day to settle at US$87.82pb as at report time. Spot Gold lost ca 1.33% day-on-day to close at US$1,643.60 per ounce as of report time.