FIXED INCOME MARKETS
Opening system liquidity increased to c.₦88.6 billion compared to yesterday’s opening balance of c.₦-176.6 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) fell to 15.38% and 16.25% respectively from 16.13% and 16.63% recorded the previous day.
Today’s trading session started off bearish, with sell interests across the mid-to-long end of the curve. As the market drew to a close, the market swerved to a mixed note, as offers improved and buyers took advantage to cherry-pick some tenors. Consequently, average yield increased by 25bps to 3.00%.
The bears in the FGN local bond market remained dominant, with offers skewed towards the short-dated maturities, particularly the 2025s, and 2028s. Although, a mixed sentiment was more pronounced on the long-dated maturities, especially on the 2037s, 2042s and 2049s. Averaged yield closed at 13.47%.
Activities in the Eurobonds market was mild, although bullish. The market kicked-start on a bullish note with few cares on the short-end of Nigeria’s curves and bids across several curves in the SSA, including the short-end curves on Ghana. Average yield rose by 4bps to 11.96%.
The Nigerian domestic bourse closed on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.02% day-on-day to close at 54,520.20points while year-to-date return closed at c.6.38%. Buying activities on pacesetters like GTCO (+0.05%) ZENITHBANK (+0.15%) and NB (+0.50) drove the bullish theme.
The NGX Consumer Goods Index appreciated in value by c. 0.14%, while the NGX Banking, Oil &Gas and Industrial Good Indices all depreciated in value by c. 0.01%, c. 0.02% and c. 0.13% respectively. DANGCEM led the value charts with c. 1.95 billion units and GTCO led the volume charts with c. ₦19.17 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦462.00/US$1.00 from ₦ 461.50/US$1.00 recorded at the close of the previous day.
Oil prices angled upward in early Asian trade on Thursday as the market shrugged off a giant U.S. crude inventory build and the International Energy Agency boosted its demand outlook. Brent Crude Oil price edged up by c.0.60% day-on-day to settle at US$85.89pb, while WTI also increased by c.0.75% day-on-day to settle at US$79.18pb as at the time of this report. Spot Gold appreciated by c.0.05% day-on-day to close at US$1,846.30 per ounce as of report time.