FIXED INCOME MARKET
Interbank system liquidity slipped into a deficit with an open balance of -ca ₦320.16billion, significantly lower than yesterday’s opening balance of ca ₦54.03 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 12.50% and 12.50% from 12.00% and 12.38%, respectively.
The Treasury bills secondary market had another quiet session, albeit with offers seen on 29 September NTB papers and 7 February OMO papers at 3.20% and 4.40%, respectively. Overall, the average rate held steady, day-on-day to settle at 3.56%.
The FGN bonds secondary market traded with mixed sentiments, with buy-side interest seen on 2026s, 2027s, and 2029s, but offers were c.15bps wide, while the 2032s and 2042s continue to see offers at 12.43% and 12.95% respectively. The widening spreads ensured there were very few trades executed, thus, the average yield dipped marginally by 2bps, day-on-day to settle at 11.54%.
Bearish sentiment dominated the SSA sovereign Eurobond curve, with most papers trading at massive discounts. Ghana 2026s reached its highest level in more than six years (c.22%), with the rest of the curve shedding c.2.75 pts, the Nigerian sovereign curve also fell more than 2 p, as growth concerns spurred global risk off tone. Overall, the average yield settled at 13.25%.
The domestic equities market reversed the bearish trend to close the day in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.05% day-on-day to close at 53,275.49pts, while year-to-date returns rose to ca +24.72%. Buyside interests were observed in stocks like MTN Nigeria Communications Plc (+5.68%), Access Holdings Plc (+2.06%), and Lafarge Africa Plc (+1.59%), respectively.
The NGX Industrial Index gained ca 0.14% while the NGX Oil & Gas, Banking, and Consumer Goods indices lost ca 0.79%, 0.76% and 0.23% day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 48.38 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦5.49 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦420.33/US$1.00 from ₦419.25/US$1.00, the previous day.
Global oil prices continue to shift erratically as investors’ sentiment weigh on concerns that high fuel prices will stifle economic growth. However, an expected easing of restrictions in Shanghai and a tight supply outlook limited loss. Brent Crude Oil price gained ca 1.32% day-on-day to settle at US$110.55pb, while WTI also rose ca 0.57% day-on-day to settle at US$110.22pb as at report time. Spot Gold gained ca 1.42% day-on-day to close at US$1,841.20 per ounce as at report time.