FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦458.32 billion, a slight decline from yesterday’s opening balance of ca ₦478.42 billion. Thus, the Overnight Policy Rate (OPR) held steady at 8.50% while the Overnight Rate (O/N) trended higher to settle at 8.83% from 8.75%, recorded the previous day.
The NTB secondary market endured a muted theme as focus was largely on the NTB auction where c.N193bn was offered across the usual tenors. Overall, the average rate stayed flat, day-on-day, to settle at 8.61%.
The FGN bonds market traded on a lull, as most players were standoffish in anticipation of the auction result. However, pockets of interests were recorded on 2025s, 2026s, and 2032s, with traded volumes few and far between. Consequently, the average yield held steady, day-on-day, to settle at 14.67%.
It was a bullish affair in the African Eurobonds space, with prices appreciating on average c1.25pts across Nigeria, Ghana, Angola, and Egypt amid offshore and retail interests, as well as short coverings. Overall, the average yield across the Nigerian sovereign curve settled at 12.19%.
In other news, Ghana’s October consumer prices rose to 40.4% Y-o-Y ( Est. 39.5%) from 37.20% in September. Also, Kenyan dollar bonds surged after the government took a step toward securing $433 million from the International Monetary Fund (IMF).
The domestic bourse closed trading activities on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.04% day-on-day to close at 43,477.48pts, while year-to-date returns extended to +1.78%. Buy activities were observed stocks like United for Africa Plc (+1.43%), Dangote Cement Plc (+0.59%), and Guaranty Trust Holding Company Plc (+0.59%), respectively.
The NGX Industrial and Banking Indices gained 0.27% and 0.04% while the NGX Oil & Gas and Consumer Goods Indices lost ca 0.67% and 0.17%, day-on-day, respectively.
First Bank of Nigeria Holdings Plc led the volume traded chart with ca 30.38 million units while Dangote Cement Plc led the value traded chart with ca ₦318.11 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to settle at ₦445.67/US$1.00 from ₦446.10/US$1.00, recorded the previous day.
Global oil prices continue to decline on reports that U.S. crude stockpiles increased more than expected and on worries that a rise in COVID-19 cases in China would reduce demand for fuel. Brent Crude Oil price lost ca 2.16% day-on-day to settle at US$93.28pb, while WTI dipped ca 2.36% day-on-day to settle at US$86.81pb as at report time. Spot Gold gained ca 0.05% day-on-day to close at US$1,716.50 per ounce as of report time.