FIXED INCOME MARKET
Interbank system liquidity declined today, opening with a balance of ₦103.27 billion, lower than the previous day’s opening balance of ca ₦247.13 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rate trended higher to settle at 14.33% and 15.00% from 10.00% and 10.50%, the previous day.
The Treasury bills secondary market traded on a quiet note, with mixed interest recorded on 08 December 2022 NTBs, February 2023 OMO papers, and July 2023 NTBs. Overall, the average rate inched up by c.7bps day-on-day, to close at 7.49%.
The FGN bonds market witnessed improved offers on 2027s, 2042s and 2050s at 11.70%, 13.70% and 13.38% respectively, but bids were c.10bps higher, ensuring very few trades were executed. Consequently, the average yield rose by c.5bps day-on-day, to settle at 12.43%.
Activity in the SSA Eurobond space was muted with a bearish undertone, as fresh concerns regarding global growth and increasing recession fears beclouded investors’ minds. Thus, the average yield across the Nigerian sovereign curve settled at 11.82%.
The domestic bourse reflected buy interest across stocks like MTN Nigeria Communications Plc (+7.51%), Nestle Nigeria Plc (+2.99%), Zenith Bank Plc (+1.90%), and Guaranty Trust Holding Company Plc (+1.75%), respectively at the end of today’s trading session. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.35% day-on-day to settle at 50,626.04pts, while year-to-date return extended to +18.52%.
The NGX Consumer Goods, Banking, and Industrial indices gained ca 1.14%, 0.63%, and 0.02%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.
First Bank of Nigeria Holdings Plc led the volume chart with ca 14.59 million units while Nestle Nigeria Plc topped the value charts with ca ₦748.09 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦430.67/US$1.00 from ₦428.88/US$1.00, recorded the previous day.
Global crude oil prices stayed volatile as investors’ sentiment tilted towards a gloomy prognosis for fuel demand on the back of reports signalling a global manufacturing downturn as OPEC+ members gather this week to discuss supply output. Brent Crude Oil price gained ca 0.99% day-on-day to settle at US$100.99pb, while WTI gained ca 0.87% day-on-day to settle at US$94.71pb as at report time. Spot Gold gained ca 0.27% day-on-day to close at US$1,792.60per ounce as of report time.