FIXED INCOME MARKET
Interbank system liquidity further improved to open with a balance of ca ₦173.96 billion, compared to yesterday’s opening balance of ca ₦152.98 billion. Thus, the Overnight Policy Rate (OPR) declined to 7.50% from 9.50% recorded the previous day, while the Overnight (ON) rates held steady at 10.25%.
The treasury bills market remained awash with bids, as FAAC inflows drove heavy demand across the curve, however, offers were scarce as sellers shelved them due to limited investment alternatives. Overall, the average mid-rate closed c.8bps lower, day-on-day, to settle at 4.57%.
The FGN bonds market reflected a bullish theme with interest skewed to 2032s, 2034s, and 2037s, respectively. Thus, the average mid yield closed ca 10bps, day-on-day to settle at 13.33%.
Risk-off sentiments persisted in the Eurobond space, as lower prices were recorded across the major SSAs and MENAs. Trades across Ghana papers were flat with no accrued interest element, as Investors continue to gauge the impact of the recent press release by Ghana’s Finance Minister. A group of international holders have also formed a creditor committee to address the ongoing issue, with material update to be provided in due course. Overall, the average yield across the Nigerian sovereign curve closed at 11.73%.
The domestic bourse recorded a flattish performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) held steady day-on-day to settle at 49,416.18pts, while year-to-date returns remain unchanged at 15.68%.
The NGX Banking and Oil & Gas Indices gained 0.27% and 0.22%, while the NGX Consumer Goods Index lost 0.01% day-on-day, respectively. The NGX Industrial Index closed flat.
Guaranty Trust Holding Company Plc led both the volume and value charts with ca 16.44 million units, traded at 354.75 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to settle at ₦452.67/US$1.00 from ₦451.50/US$1.00, recorded the previous day.
Global crude oil prices improved today, backed by a softer dollar and the US effort to restore crude stockpiles, but gains were limited by uncertainty over rising Covid-19 cases in China. Brent Crude Oil price gained ca 0.80% day-on-day to settle at US$80.44pb, while WTI rose ca 0.78% day-on-day to settle at US$75.78pb as at report time. Spot Gold gained ca 1.75% day-on-day to close at US$1,829.90 per ounce as of report time.