FIXED INCOME MARKET
Interbank system liquidity declined further today, opening with a balance of ₦56.50 billion, lower than the previous day’s opening balance of ca ₦103.27 billion. Thus, the Overnight Policy Rate (OPR) printed higher at 14.50% from 14.33% the previous day, while the Overnight Rate (ON) held steady at 15.00%.
The Treasury bills secondary market was largely bearish, with offers mostly seen on August to November 2022 NTB papers at c.11.50% to 12.10% respectively, while bids were c.30bps higher amid low system liquidity. Overall, the average rate inched up by c.10bps day-on-day, to close at 7.49%.
The FGN bonds market endured a muted session, although improved offers were seen across 2026s, 2027s, 2042s, 2049s and 2050s while mild demand was seen on 2029s. Consequently, the average yield rose by c.7bps day-on-day, to settle at 12.52%.
Investors’ concerns over Nancy Pelosi’s travel to Taiwan appear to have subsided, but risks to all parties’ long-term relationship remain. For the most part, the SSA markets were in the red, with risk assets repriced lower as the Fed’s tone turned hawkish. Thus, the average yield across the Nigerian sovereign curve settled at 12.12%.
The domestic bourse reversed yesterday’s bullish stance, as the Nigerian Stock Exchange All Share Index (NGX ASI) slid 0.06% day-on-day to settle at 50,594.97pts, while year-to-date return reduced to +18.44%. This performance was largely due to sell pressures on Nigerian Breweries Plc (-0.51%) and MTN Nigeria Communications Plc (-0.09%).
The NGX Industrial and Banking indices shed ca 0.45% and 0.32% while NGX Consumer Goods and Oil & Gas indices gained ca 0.39% and 0.28%, day-on-day, respectively.
MTN Nigeria Communications Plc led both the volume and value charts with ca 10.41 million units, traded at 2.24 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦429.20/US$1.00 from ₦430.67/US$1.00, recorded the previous day.
Global crude oil prices fell today, despite the decision by the OPEC+ agreement to raise the oil output target by only 100,000 barrels per day (bpd), deflating any hopes for a substantial supply increase. Brent Crude Oil price lost ca 2.26% day-on-day to settle at US$98.27pb, while WTI dipped ca 2.39% day-on-day to settle at US$92.16pb as at report time. Spot Gold lost ca 0.90% day-on-day to close at US$1,773.50per ounce as of report time.