FIXED INCOME MARKET
Interbank system liquidity improved today with an opening balance of ₦1.92 billion, buoyed by late FAAC inflows from Friday. Thus, the Overnight Policy Rate (OPR) trended lower to 13.83% from 14.00% recorded in the previous session, while the Overnight Rate (O/N) remained unchanged at 14.00%.
The NTB market witnessed selling interest on Aug 2022 NTB, Apr 2023 NTB, and 22 June 2023 OMO papers at 4.50%, 5.60% and 6.20% levels respectively, as banks sought to create liquidity in a tight market. Overall, the average rate inched up by 8bps, day-on-day, to 5.58%.
The FGN bonds secondary market observed a calm session, albeit with mixed sentiments. Few demand was seen on 2042s, while selling interest was recorded on 2025s, 2026s and 2032s. Overall, the average yields remained unchanged due to weak traded volumes.
The Eurobond market opened slightly firmer today to consolidate on Friday’s rally, following Ghana’s preliminary engagement with the IMF. Although activity was weak due to the US holiday, early buyside interest recorded on some of the SSAs turned slightly mixed to bearish, as players positioned ahead of a busy data release week. Overall, the average yield across the Nigerian sovereign curve settled at 12.26%.
The domestic bourse closed trading activities in the red, with sell pressure on stocks like Nigerian Breweries Plc (-5.02%), Lafarge Africa Plc (-1.51%), and Access Holdings Plc (-1.06%). The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.07% day-on-day to settle at 51,791.45pts, while year-to-date return trimmed to +21.24%.
The NGX Banking index gained ca 0.17%, while the NGX Consumer Goods, Oil & Gas and Industrial indices shed ca 0.94%, 0.35%, and 0.12%, day-on-day, respectively.
Transnational Corporation of Nigeria Plc led the volume chart with ca 25.07 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦799.90 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦425.75/US$1.00 from ₦425.00/US$1.00, recorded on Friday.
Global crude oil prices extended gains today, as market sentiments ride on tight supply amid lower OPEC output despite concerns of global recession. Brent Crude Oil price gained ca 1.96% day-on-day to settle at US$113.82pb, while WTI also rose ca 2.02% day-on-day to settle at US$110.62pb as at report time. Spot Gold gained ca 0.33% day-on-day to close at US$1,807.50 per ounce as at report time.