FIXED INCOME MARKET
System liquidity opened significantly lower with a negative balance of c.₦3.65 billion, compared to yesterday’s opening balance of c.₦40.79 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to 12.00% and 13.00%, respectively from 11.00% and 11.50% recorded the previous day.
The Treasury bills market closed the week with mixed interest recorded across the curve. Mild demand was seen across Oct to Dec 2022 CBN Special bills at c.12.00% levels, while selling interest was observed on Feb 2023 OMO papers at c.10.10%. Overall, average rate declined marginally by c.3bps to settle at 7.50%.
The FGN bonds market sustained its bearish theme to close the week, with more selling interest recorded across the curve and offer yields adjusting upwards in tandem, ahead of Monday’s FGN bond auction. Consequently, the average yield closed c.10bps higher day-on-day, settling at 12.94%.
The SSA Sovereign Eurobond space closed the week on a soft note, ending the rally witnessed for the major part of the week, as investors saw prevailing rates as comfortable levels to take profit on their long exposures. Overall, the average yield across the Nigerian sovereign curve to settle at 10.19%.
The domestic bourse continued to trade with bearish sentiments witnessed on stocks across the board. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.70% day-on-day to settle at 49,664.07pts while year-to-date return trimmed to +16.26%. This performance was due to profit-taking activities in Bellwethers like DANGCEM (-2.34%), ACCESSCORP (-0.56%), and Guaranty Trust Holding Company Plc (-0.24%), respectively.
The NGX Industrial, Banking and Oil & Gas Indices all lost ca 4.61%, 0.19% and 0.16% respectively while the NGX Consumer Goods Index gained ca 2.82% day-on-day. CAPHOTEL led the volume chart and value chart with ca 478.20million units and ₦3.35 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦429.63/US$1.00 from ₦430.25/US$1.00, recorded the previous day.
Oil prices dipped early in the day amid uncertainty on the demand outlook based on contrasting views from OPEC and the International Energy Agency (IEA), but benchmark contracts were headed for weekly gains as recession fears eased. Brent Crude Oil price lost ca 2.02% day-on-day to settle at US$97.57pb, while WTI lost ca 2.49% day-on-day to settle at US$92.00pb as at report time. Spot Gold gained ca 0.04% day-on-day to close at US$1,808.00 per ounce as of report time.