FIXED INCOME MARKET
Interbank system liquidity declined to c.₦52.64 billion today from ₦78.39 billion recorded on Friday. Consequently, Overnight Policy Rate (OPR) and Overnight (ON) rate increased to 13.75% and 14.00% respectively from 10.33% and 10.92% reported at Friday’s session.
Activity in the NTB market was muted, amid weak volumes traded, especially on 29 Aug 2022 and 8 Jun 2023 papers. Overall, average rate was relatively unchanged at 3.81%.
The FGN bonds market endured a quiet theme as market participants focused on the outcome of the June 2022 FGN Bond auction, where ₦225 billion was offered across 3 tenors. However, there was mild interest recorded on 2028s and 2034s at 10.85% and 12.35% respectively. Overall, average yield remained flat at 11.49%.
The Eurobond market experienced an uneventful session to start the week amid the US holiday. However, there was little retail interest seen on some SSA sovereigns. Overall, average yield was fairly unchanged at 11.29%.
The Nigerian equity market opened the week on a bearish note, as the ASI lost c.1.97% from the previous week to close at 50,756.74pts. Continued profit-taking on bellwethers such as DANGOTE CEMENT (-10.00%) and UNION BANK of NIGERIA (-10.00 %) drove bearish sentiments today while year-to-date return trimmed to +18.82%.
The NGX Industrial, Consumer Goods and Oil & Gas Indices all lost c.5.27%, 1.16% and 0.23% respectively while the NGX Banking Index gained c.0.35% from the previous session. UBA led the volume chart with c.29.50 million units while NESTLE led the value charts with c.₦ 592.06 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained unchanged at ₦421.33/US $1.00 recorded at the previous session.
Oil prices edged down today, reversing earlier gains, as concerns about slowing global economic growth and fuel demand offset worries about tightening supplies. Brent Crude Oil price lost c.0.56% to settle at US$112.40pb as the WTI also lost c.0.47% from the previous session to settle at US$109.05pb as at report time. Spot Gold gained c.0.07% to close at US$1,839.60 per ounce as at report time.