FIXED INCOME MARKETS
System liquidity declined slightly today to c.₦ 956.95 billion, compared to yesterday’s balance of c.₦ 1.06 trillion. Consequently, the Overnight Rate (O/N) rose slightly to 11.00% while the Overnight Policy Rate (OPR) remained unchanged at 10.50% recorded the previous day.
The treasury bills market was awash with bids on the newly issued 1-year paper between 1.80% and 2.50% levels, as investors scrambled for offers to fill the unmet demand at yesterday’s NTB auction. Thus, the average mid-rate declined by c.15bps to 3.56%.
The FGN bonds market witnessed a relatively bullish theme, amid ample system liquidity and decline in stop rates at yesterday’s NTB auction. Demand was majorly observed on 2024s, 2037s and 2049s, while few selling interests were seen on 2028s and 2029s. Overall, the average mid -yield closed lower to settle at 14.00% from 14.08% recorded the previous day.
The Eurobond space endured sideways interests across most SSA and MENA curves. Ghana and Egypt traded much lower prices amid country specific issues, while Nigeria and Angola were better bid on the long end of the curve.. Overall, the average yield across the Nigerian sovereign curve closed at 10.48%.
The Nigerian equities market reversed its bearish theme today, as buying interests were observed on GEREGU (+10.00%), ACCESSCORP (+4.44%) and UBA (+1.23). The Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.29% day-on-day to close at 52,752.96 points while market year-to-date return extended to c.2.93%.
The NGX Banking, Consumer Goods and Oil & Gas Indices all appreciated by c.1.58%, 0.05% and 1.58% respectively while the NGX Industrial Index declined marginally by c.0.01%. GTCO led the volume and values charts with c.17.79 million and c.₦ 433.18 billion worth of trades respectively.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦ 461.25/US$1.00 from ₦ 461.70/US$1.00 recorded the previous day.
Oil prices rose 1% today on expectations that demand will strengthen, as top oil importer, China, reopens its economy, and on news U.S. crude inventories have risen less than expected. Brent Crude Oil price gained c.0.75% day-on-day to settle at US$86.79pb, while WTI gained c.0.70% day-on-day to settle at US$80.71b as at the time of this report. Spot Gold lost c.0.46% day-on-day to close at US$1,933.70 per ounce as of report time.