FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦747.90 billion, significantly higher than yesterday’s opening balance of ca ₦163.77 billion, buoyed by FAAC inflows. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) dipped to settle at 9.50% and 10.13% from 10.25% and 10.63%, recorded the previous day.
The buyside momentum in the treasury bills market persisted today, as today’s session was literally one-way with ample demand recorded across the curve but offers were not forthcoming. Overall, the average mid-rate closed ca 7bps lower, day-on-day, to settle at 4.38%.
It was a relatively muted FGN bonds trading session, with most of the sideways activity skewed to 2037s. Consequently, the average mid yield closed ca 2bps higher, day-on-day to settle at 13.20%.
Amid higher prices in the stock markets and few rallies observed across major markets, the Eurobond space endured another bullish session, with sizeable demand recorded across Nigeria, Ghana, Angola, and Egypt, causing an average price appreciation of ca 1.00pts. Overall, the average yield across the Nigerian sovereign curve closed at 11.31%.
The domestic bourse recorded a positive session as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.05% day-on-day to settle at 49,499.43pts, while year-to-date return extended to +15.88%. This was largely due to the trade executed on stocks like First Bank of Nigeria Holdings Plc (+4.05%) and Guaranty Trust Holding Company Plc (+0.45%), respectively.
The NGX Oil & Gas and Consumer Goods Indices gained ca 0.26% and 0.04% while the NGX Industrial and Banking Indices lost ca 0.21% and 0.11% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led the volume chart with ca 29.10 million units, while Airtel Africa Plc topped the value charts with ca ₦925.10 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to settle at ₦456.25/US$1.00 from ₦456.33/US$1.00, recorded the previous day.
Global oil prices continue to improve as crude stockpiles tighten and demand soars amid a major winter storm hitting the United States. Brent Crude Oil price gained ca 0.13% day-on-day to settle at US$82.31pb, while WTI dipped ca 0.04% day-on-day to settle at US$78.26pb as at report time. Spot Gold dipped ca 1.04% day-on-day to close at US$1,806.50 per ounce as of report time.