FIXED INCOME MARKET
Interbank system liquidity remained low, opening with a negative balance of ca ₦9.24 billion, better than Friday’s balance of ca -₦14.49 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) trended significantly lower to 12.50% and 13.00% from 18.00% and 18.50% respectively, on Friday.
The NTB secondary market started the month on a quiet note. Nonetheless, buying interest was observed at the long end of the curve, particularly for the 27 October 2022 NTB paper. The OMO secondary market traded with a similar trend, albeit with few offers seen on the January – February maturities. Overall, the average rates remained stable, day-on-day at 5.17%.
The FGN bonds secondary market witnessed a slow start, with mixed sentiments observed across the curve, as market players trade cautiously. The 2026s, 2027s, 2028s, 2036s, and 2050s witnessed the most traction, but trades executed were few and far between. Overall, the average yield remained flat, day-on-day at 11.68%.
Bearish sentiments were witnessed in the Eurobond space today, with improved offers seen across the sovereign curve. Overall, the average yield rose by ca 2bps, day-on-day at 6.59%.
The domestic equities market started this month’s trading activities with a bearish performance. The Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.15% day-on-day to close at 41,976.79pts, while year-to-date returns receded to 4.24%. This performance was attributed to profit-taking in bellwethers like First Bank of Nigeria Holdings Plc (-2.71%), Guaranty Trust Holding Company Plc (+0.35%), Access Bank Plc (-0.53%), and Zenith Bank Plc (-0.40%), respectively.
The NSE Oil & Gas, Banking, and Consumer Goods indices lost ca 1.82%, 0.43%, and 0.30% respectively, while the NSE Industrial Goods index gained ca 0.11% day-on-day.
Mutual Benefits Assurance Plc led the volume chart with ca 52.44 million units while Zenith Bank Plc topped the value charts with ca ₦339.79 billion.
FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.98/US$1.00 from ₦415.10/US$1.00, on Friday.
Global crude oil prices trend northward, on optimistic expectations of strong demand in the near term, as key producers in OPEC+ stick to production plans on oil output. Thus, Brent Crude oil price gained ca 0.91% day-on-day to settle at US$84.46pb, while WTI rose by ca 0.69% to US$84.15pb, as at report time. Spot Gold gained ca 0.62% day-on-day to settle at US$1,795.00 per ounce as at report time.