FIXED INCOME MARKETS
Interbank system liquidity improved significantly to open at c.₦701.38 billion long, compared to yesterday’s opening balance of c.₦364.39 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 9.50% and 9.83% from 10.75% and 10.83% recorded the previous day.
Activity in the NTB space was bullish, buoyed by yesterday’s NTB auction result. The newly issued 1-year paper was offered between 8.00% and 8.20%, however bids hovered around 8.40% levels. Thus, the average mid-rate closed c.8bps lower at 4.30%.
The FGN bonds market observed some buyside activity across 2025s, 2026s and 2037s, albeit the traded volumes were not significant. Overall, the average mid-yield closed c.5bps lower at 13.16%.
In the Eurobond space, mixed sentiments dominated proceedings though executed trade volumes have remained thin, as most institutional investors have taken a pause from active trading due to the holidays and year-end book keeping. Overall, the average yield across the Nigerian sovereign curve closed at 11.38%.
The equities market extended its gains at todays’ session, driven by buying interests on stocks such as NESTLE (+10.00%), GEREGU (+10.00%), and NB (+9.04%). The Nigerian Stock Exchange All Share Index (NGX ASI) rose by c.0.73% day-on-day to close at 50,300.00pts, while market year-to-date return extended to c.+17.75%.
The NGX Banking, Oil & Gas, Industrial and Consumer Indices all appreciated by c.0.27%, 2.82%, 0.14% and 3.65% respectively. FBNH led the volume chart with c.78.86 million units while GTCO topped the value charts with c. ₦ 922.55 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦ 461.67/US$1.00 from ₦ 461.33/US $1.00, recorded the previous day.
Oil prices pared some of its losses, as a weaker dollar partially offset demand fears resulting from surging COVID-19 cases in China. Brent Crude Oil price lost c.1.51% day-on-day to settle at US$82.00pb, while WTI lost c.2.06% day-on-day to settle at US$77.33pb as at report time. Spot Gold gained c.0.37% day-on-day to close at US$1,822.60 per ounce as of report time.