FIXED INCOME MARKET
Interbank system liquidity opened the week with a negative balance of ca -₦9.80 billion, compared with Friday’s deficit balance of ca -₦93.82 billion. However, the Overnight Policy Rate (OPR) trended higher to settle at 12.33% from 12.25%, while the Overnight (ON) rate held steady at 12.50%.
The NTB secondary market started the week on a quiet note, as investors remained on the sidelines ahead of Wednesday’s NTB auction. However, there were few bids seen on long-end papers at 4.60% but offers were c.20bps wide. Overall, the average rate stayed relatively flat across the NTB curve to settle at 3.56%.
The FGN market was mixed to bullish today, with some demand seen on 2025s, 2026s, 2028s, 2029s and 2032s, while improved offers were seen on 2042s and 2050s. Overall, the average yield dipped by ca 5bps, day-on-day, to settle at 11.49%.
The Eurobond space opened the week on a firmer footing once more, following Friday’s relief. There was notable interest in the sub-Saharan papers, with Nigeria and Ghana gaining on average c.2pts and c.2.5pts respectively. Overall, the average yield settled at 12.43%.
The domestic bourse extended losses, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.13% day-on-day to close at 52,911.51pts, while year-to-date returns dipped to +23.87%. Profit-taking activities hit stocks like Presco Plc (-10.00%), Guaranty Trust Holding Company Plc (-0.84%), and Zenith Bank Plc (-0.21%), respectively.
The NGX Industrial index lost ca 0.09% while the NGX Oil & Gas, Banking, and Consumer Goods indices gained ca 0.28%, 0.10%, and 0.05% day-on-day, respectively.
Jaiz Bank Plc led the volume chart with ca 114.01 million units while Presco Plc topped the value charts with ca ₦1.19 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦420.33/US$1.00 from ₦419.03/US$1.00, recorded on Friday.
Global oil prices manage to reverse bearish trend, despite investors’ concerns over denting fuel demand, tight supply, and a lack of progress towards a ban on Russian oil. Brent Crude Oil price gained ca 0.55% day-on-day to settle at US$113.17pb, while WTI also rose ca 0.20% day-on-day to settle at US$110.55pb as at report time. Spot Gold gained ca 0.37% day-on-day to close at US$1,848.90 per ounce as at report time.