FIXED INCOME MARKET
Interbank system liquidity opened ca ₦276.90 billion short, significantly lower than yesterday’s opening balance of ca ₦19.28 billion. However, the Overnight Policy Rate (OPR) decreased by 5bps to settle at 13.83%, while the Overnight Rate (O/N) held steady at 14.00%.
The NTB secondary market was relatively calm today, although offers were witnessed across August 2022, November 2022, and January 2023 NTB papers at 10.70% levels but bids were much higher at 11.05%. Overall, the average rate inched up by 8bps day-on-day, to close at 6.95%.
The FGN bonds market endured a muted session, as players stayed cautious ahead of Monday’s FGN bond auction and the MPC meeting. Nonetheless, offers were still available on 2025s, 2032s and 2042s at 10.30%, 12.60% and 13.20% respectively. Overall, the average yield inched up by 6bps day-on-day to settle at 11.79%.
A brutal week for EMs and African Eurobonds ended slightly positive, following comments by the Fed Governor Waller to stick with the planned 75bps rate hike in July, as against market’s expectation of a steeper rate hike of 100bps. Overall, the average yield across the Nigerian sovereign curve settled at 14.12%.
The domestic bourse recorded a positive session, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.71% day-on-day to close at 52,215.12pts, while year-to-date returns extended to ca +22.24%. This was largely supported by buy sentiments on bellwethers like Airtel Africa Plc (+10.00%), Guaranty Trust Holding Company Plc (+1.21%), and Zenith Bank Plc (+0.45%), respectively.
The NGX Industrial Index lost ca 1.87% while the Consumer Goods, Banking, and Oil & Gas indices gained ca 0.33%, 0.10%, and 0.06% day-on-day, respectively.
Caverton Offshore Support GRP Plc led the volume chart with ca 47.48 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.53 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦430.33/US$1.00 from ₦424.63/US$1.00, recorded the previous day.
Global Oil prices improved today amid prospects of a less aggressive U.S. rate hike, however, worries about demand recovery curbed gains. Brent Crude Oil price gained ca 2.48% day-on-day to settle at US$101.56pb, while WTI rose ca 2.43% day-on-day to settle at US$98.11pb as at report time. Spot Gold lost ca 0.111% day-on-day to close at US$1,704.10 per ounce as at report time.