FIXED INCOME MARKET
Interbank system liquidity remained short to close the week, with a deficit balance of ₦329.67 billion, lower than previous day’s balance of ca -₦325.43 billion. With the current constraint on banking liquidity, the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) held steady at 14.00% levels.
The NTB market started the new month on a mixed to bullish note, with significant demand witnessed on 08 and 29 June 2023 NTB papers at 6.00% levels, while selling interest was seen on 22 June OMO at 6.20%. Overall, the average rate dipped by 5bps, day-on-day, to 5.21%.
The FGN bonds market observed subtle buying interest on 2042s and 2050s at 13.06% and 13.00% respectively, while improved offers were seen on 2025s and 2026s at 10.08% and 10.20% respectively. Overall, the average yield settled at 11.54%.
The Eurobond market witnessed renewed demand across the African markets, especially in the Ghana market, following its President’s authorization of the Finance Minister to commence formal engagement with the IMF, to support an economic program put together by the government. Overall, the average yield across the Nigerian sovereign curve settled at 12.35%, while Ghana gained c.8.3pts across the curve.
The domestic bourse recorded a positive session at the close of the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) marginally gained 0.02% day-on-day to close at 51,829.67pts, while year-to-date returns extended to ca +21.33%. Buy interests in Access Holdings Plc (+1.62%) and Zenith Bank Plc (+0.69%), elevated market performance.
The NGX Banking and Industrial indices gained ca 0.36% and 0.04%, while the NGX Oil & Gas and Consumer Goods indices shed ca 0.39% and 0.01%, day-on-day, respectively.
Guaranty Trust Holding Company Plc led both the volume and value charts with ca 23.47 million units, traded at 480.30 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate slightly appreciated to ₦425.00/US$1.00 from ₦425.05/US$1.00, recorded the previous day.
Global crude oil prices edge northward as supply disruptions in Libya and anticipated shutdowns in Norway outweigh investor concerns that a slowdown in the economy will reduce demand. Brent Crude Oil price gained ca 1.82% day-on-day to settle at US$111.01pb, while WTI also rose ca 2.00% day-on-day to settle at US$107.88pb as at report time. Spot Gold dipped ca 0.04% day-on-day to close at US$1,806.60 per ounce as at report time.