FIXED INCOME MARKET
The Overnight Policy Rate (OPR) and Overnight Rate (ON) stayed elevated at 14.83% and 15.00% respectively, amid today’s Retail FX auction, with interbank system liquidity opening ca ₦63.22 billion short.
The NTB secondary market closed the week bearish, with selloffs observed across August to November 2022 papers at c.11.10%. Overall, the average rate inched up by c.5bps day-on-day, to close at 7.03%.
The FGN bonds secondary market witnessed mixed sentiments, with mild demand seen on 2026s and 2042s amid c.₦65billion coupon inflow, while 2025s and 2028s saw improved offers from sellers. Overall, the average yield inched up marginally by c.2bps, day-on-day to settle at 12.20%.
The SSA Eurobond space endured sideways trading, with mild buying interest seen in Nigeria and Angola papers, while reports of Ghana’s gross international reserves declining by c.US$3bn to c.US$6bn sent the market into a sell-off frenzy. Overall, the average yield across the Nigerian sovereign curve settled at 12.60%.
The domestic bourse continued to trend southward, with the Nigerian Stock Exchange All Share Index (NGX ASI) losing 0.27% day-on-day to settle at 51,979.92pts, while year-to-date return further reduced to +21.69%. This performance was largely due to sell pressures on stocks such as Zenith Bank Plc (-5.47%), United Bank for Africa Plc (-0.68%), and Guaranty Trust Holding Company Plc (-0.48%).
The NGX Consumer Goods index gained ca 0.22%, while the NGX Banking, Industrial, and Oil & Gas indices shed ca 2.74%, 0.54%, and 0.12%, day-on-day, respectively.
United Bank for Africa Plc led the volume chart with ca 63.74 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦755.36 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦430.00/US$1.00 from ₦426.00/US$1.00, recorded the previous day.
Global crude oil prices improved today despite the pullback in U.S. dollars and improved supply from Libya. Brent Crude Oil price gained ca 1.26% day-on-day to settle at US$105.17pb, while WTI rose ca 1.03% day-on-day to settle at US$97.24b as at report time. Spot Gold gained ca 0.96% day-on-day to close at US$1,729.90per ounce as of report time.