FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦34.55 billion, significantly lower than Friday’s opening balance of ₦317.08 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 15.33% and 15.83%, from 12.00% and 12.83% recorded, on Friday.
The NTB secondary market traded on a muted note, with mild interests recorded on 27 April 2023 and 09 November 2023 papers. Overall, the average rate ca 5bps lower, day-on-day, to settle at 8.56%.
The FGN bonds market reflected a quiet theme, as attention shifted to the FGN bonds auction where c.N225bn was offered across 3 maturities. However, there were improved offers on 2032s and 2037s, but executed volume were few and far between. Consequently, the average yield closed c.3bps higher, day-on-day, to settle at 14.74%.
The latest US Fed’s comments have given the market something to think about and a reminder that the rate hike trajectory still has a long way to go, albeit at a less aggressive momentum. Thus, the SSA markets, especially Nigeria, Ghana, and Angola, repriced lower amid these remarks. Overall, the average yield across the Nigerian sovereign curve settled at 11.27%.
The domestic bourse closed the first trading day of the week on a negative note. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.34% day-on-day to close at 43,818.12pts, while year-to-date returns reduced to +2.58%. Investors took sell positions in MTN Nigeria Communications Plc (-2.40%) which largely influenced market’s bearish performance.
The NGX Banking Index gained 0.26% while Oil & Gas Index lost 0.88%, day-on-day, respectively. The NGX Consumer Goods and Industrial Indices closed flat.
Access Holdings Plc led the volume traded chart with ca 87.92 million units while MTN Nigeria Communications Plc led the value traded chart with ca ₦764.37 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to settle at ₦446.00/US$1.00 from ₦445.75/US$1.00, recorded on Friday.
Global oil prices dipped today, weighed down by a stronger US dollar and record-high coronavirus cases in China. Brent Crude Oil price dipped ca 1.33% day-on-day to settle at US$94.63pb, while WTI lost ca 1.85% day-on-day to settle at US$87.31pb as at report time. Spot Gold gained ca 0.04% day-on-day to close at US$1,770.10 per ounce as of report time.