FIXED INCOME MARKET
Interbank system liquidity slipped into a deficit, with an opening balance of ca – ₦78.94 billion, lower than Friday’s balance of ca ₦74.93 billion. Thus, the Overnight Policy Rate (OPR) trended higher to 14.75% from 14.67% recorded in the previous session, while the Overnight Rate (O/N) remained unchanged at 15.00%.
The NTB secondary market maintained a quiet stance, with underlying interest recorded on 28 November CBN Special bills at 12.30% levels. Thus, the average rate rose by c.6bps day-on-day, to settle at 7.23%.
The FGN bonds market was largely bearish, with selling interest observed on 2025s, 2026s, 2028s, and 2050s while mild demand was observed on 2042s. Consequently, the average yield rose by c.8bps day-on-day, to settle at 12.69%.
The Eurobond market opened firmer on the back of strong U.S. Jobs report on Friday. However, the undertone remains bearish as the report adds to the speculation of a more aggressive Fed with bets increasing on another 75 bps hike in September. Thus, the average yield across the Nigerian sovereign curve settled at 11.07%.
The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.46% day-on-day to close at 50,489.73pts, while market year-to-date return reduced to ca +18.20%. This performance leaned heavily to profit taking in Zenith Bank Plc (-2.97%), MTN Nigeria Communications Plc (-2.28%), First Bank of Nigeria Holdings Plc (-1.37%), and Guaranty Trust Holding Company Plc (-0.49%), respectively.
The NGX Consumer Goods Index gained ca 0.17% while NGX Banking and Industrial indices lost ca 1.10% and 0.01%, day-on-day, respectively. The NGX Oil & Gas index closed flat.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 74.63 million units, traded at 820.15 million worth of trades
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦431.00/US$1.00 from ₦428.13/US$1.00, recorded on Friday.
Global crude oil prices improved despite concerns about recession, combined with data from China which indicated a slow recovery in crude imports last month. Brent Crude Oil price rose ca 1.38% day-on-day to settle at US$96.23pb, while WTI gained ca 1.40% day-on-day to settle at US$90.26pb as at report time. Spot Gold gained ca 0.72% day-on-day to close at US$1,804.10 per ounce as of report time.