FIXED INCOME MARKET
Interbank system liquidity opened significantly higher today at ca ₦68.71 billion long, buoyed by OMO maturity of ca. ₦100 billion, compared to yesterday’s opening balance of ca ₦38.03 billion short. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 14.50% and 15.00% from 14.00% and 14.50% recorded, the previous day.
The NTB secondary market reflected a bearish theme, with offer rates inching up by c.10bps across the short to mid-dated papers (August 2022 to February 2023), while the long end stayed relatively flat at c.7.20% levels. Overall, the average rate rose c.9bps day-on-day, to settle at 7.78%.
The FGN secondary bonds market witnessed a bearish bias, spurred by yesterday’s bond auction results. Offer yields on 2025s, 2032s, and 2042s printed at 12.45%, 13.40%, and 13.95% respectively. Overall, the average yield rose c. 13bps day-on-day, settling at 12.89%.
Following yesterday’s Inflation rate release for Nigeria (at 19.64%), the sovereign papers witnessed some speculative trading. However, traded volumes were relatively low, with minimal action reported across the curve. Ghana and Angola papers also traded on a soft note, with the latter trading lower due to declining oil prices. Overall, the average yield across the Nigerian sovereign curve settled at 10.88%.
The domestic bourse closed the day in positive territory, following buy interest in stocks such as BUA Cement Plc (+2.63%) and Zenith Bank Plc (+0.46%). Thus, the Nigerian Stock Exchange All Share Index (NGX ASI) gained ca 0.16% day-on-day to close at 49,709.46pts, while year-to-date return extended to +16.37%.
The NGX Industrial and Banking Indices gained ca 0.96% and 0.31% while the NGX Oil & Gas and Consumer Goods Indices lost ca 0.12% and 0.11% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 36.83 million units, traded at 396.18 million worth of trades
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦430.67/US$1.00 from ₦430.00/US$1.00, recorded the previous day.
Global oil prices fell as weak Chinese economic data raised concerns of a recession, while the market observed talks on renewing an agreement that may allow additional Iranian oil exports. Brent Crude Oil price dipped ca 2.53% day-on-day to settle at US$92.70pb, while WTI lost ca 2.73% day-on-day to settle at US$86.87pb as at report time. Spot Gold dipped ca 0.56% day-on-day to close at US$1,788.00 per ounce as of report time.