FIXED INCOME MARKET
Interbank system liquidity remained buoyant with a balance of ₦520.10 billion, compared to the previous day’s opening balance of ca ₦591.31 billion. Overall, the Overnight Policy Rate (OPR) remained unchanged at 4.75%, while the Overnight (ON) rates trended lower, settling at 4.93% from 5.00%, recorded yesterday.
The NTB market ended the week on a calm note, with very few interests seen on CBN special bills and mid dated NTB papers. Thus, the average rate stayed relatively flat, day-on-day to settle at 3.74%.
The FGN bonds market witnessed mild buyside activity, with traction tilted to the 2027s, 2034s, 2035s, and 2036s. However, the offers were quite far from market bids, ensuring little to no trade was executed. Thus, the average rate dipped by 6bps, day-on-day to settle at 11.61%.
Following the initial market rebound after the somewhat optimistic post-FOMC meeting, the Eurobond market went into bear mode. Massive selloffs occurred across the curve in the SSA markets (Nigeria, Ghana, and Angola) alongside the North Africa curve, closing on average 2 to 3pts lower. Overall, the average yield settled at 10.55%.
The domestic bourse closed trading activities in the green, with buy-interest dominant on stocks like International Breweries Plc (+9.76%), Flour Mills Nig. Plc (+4.23%), Zenith Bank Plc (+1.88%), and Nigerian Breweries Plc (+1.38%), respectively. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.20% day-on-day to settle at 50,937.01pts, while year-to-date returns extended to +19.24%.
The NGX Consumer Goods, Banking, Oil & Gas, and Industrial Goods indices gained ca 1.39%, 1.34%, 0.79% and 0.13% day-on-day, respectively.
Livingtrust Mortgage Bank Plc topped the volume chart with ca 88.57 million units, while Seplat Energy Plc led the value chart with ca 851.77 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦417.00/US$1.00 from ₦419.00/US$1.00, the previous day.
Despite concerns about global economic growth, global oil prices have stayed positive, as looming European Union sanctions on Russian oil have heightened the prospect of lower crude supplies. Brent Crude Oil price gained ca 2.05% day-on-day to settle at US$113.17pb, while WTI also rose ca 2.32% day-on-day to settle at US$110.77pb as at report time. Spot Gold gained ca 0.64% day-on-day to close at US$1,887.70 per ounce as at report time.