FIXED INCOME MARKETS
Opening system liquidity declined to c.₦459.3billion because of the NTB auction settlement, compared to yesterday’s opening balance of c.₦ 650.3 billion. Nonetheless, the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) remained unchanged at 10.50% and at 10.81% respectively.
At today’s trading session, market players sought to cover their unmet bids (c. ₦600bn) in the secondary market, with most of the demand skewed to the newly issued 1-year paper. Trades were majorly executed at sub 1.60% levels on the long end, thus, causing the average mid-rate to close c.28bps lower to settle at 2.43%.
Activity in the FGN bonds market was mixed to bullish, as the bearish theme which dominated the market in the last couple of days halted. Most of the interest was observed on short-dated papers (2024s, 2025s and 2028s) and select maturities on the long end (2037s and 2049s). Overall, the average mid-yield closed c.14bps lower to print at 13.69%.
The SSA curves settled in a bullish territory after a mixed start, as early cherry-picking across several attractively priced papers turned full-blown bullish by close of market, following the release of the US Jobless Claims report which printed as expected in the survey (196k vs Est. 190k). A similar trend was also noticed across Egypt’s curve, with late buying interest witnessed at the long end.
The Nigerian domestic bourse closed on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) decreased by c.0.12% day-on-day to close at 54,359.90points while year-to-date return closed higher at c.6.07%. Selling activities on trailblazers like NB (-2.63%) GEREGU (-2.44) and TOTAL(-2.32) drove the negative trend.
The NGX Oil and Gas, Banking and Oil and Consumer Goods Indices all depreciated in value by c. 0.61, c.0.38 and c. 0.30 The NGX Industrial Goods Index closed flat. GTCO led the values charts with c. 560.37 million and UNIVINSURE led the volume charts with c.₦71.81 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦461.10/US$1.00 from ₦ 461.17/US$1.00 recorded at the close of the previous day.
Oil edged up in early trade on Thursday, extending gains for a fourth consecutive day, as crude loading disruptions in Turkey and optimism over China’s recovering demand continued to buoy sentiment. Brent Crude Oil price gained c.0.20% day-on-day to settle at US$85.26pb, while WTI gained c.0.23% day-on-day to settle at US$78.65pb as at the time of this report. Spot Gold grew by c.0.17% day-on-day to close at US$1,893.90 per ounce as of report time.