FIXED INCOME MARKET
Interbank system liquidity opened significantly lower with a deficit balance of ca ₦150.49 billion due to the FGN bond auction settlement, compared to yesterday’s opening balance of ca ₦68.72 billion. Thus, the Overnight Policy Rate (OPR) printed higher at 14.67% from 14.50% the previous day, while the Overnight Rate (ON) held steady at 15.00%.
The NTB secondary market traded on a mixed note, with buying interest recorded on 28 November 2022 paper at 12.20%, while August 2023 papers witnessed sell pressures at 7.20%. Overall, the average rate rose c.5bps day-on-day, to settle at 7.78%.
The FGN secondary bond market witnessed a bearish theme, with higher offer yields largely seen on 2025s, 2032s, and 2042s, while thin liquidity on 2049s and 2050s kept their yields relatively unchanged. Overall, the average yield rose c. 13bps day-on-day, settling at 12.91%.
The Eurobond market continued to trade on a soft tone, as risk assets were priced lower across the SSAs, although traded volumes for Nigeria papers were very low due to the illiquid condition of the market. Overall, the average yield across the Nigerian sovereign curve settled at 11.35%.
The domestic bourse closed the day in the red, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.04% day-on-day, to close at 49,691.17pts. The market year-to-date returns reduced to +16.33%, with sell activity observed on stocks such as First Bank of Nigeria Holdings Plc (-0.47%) and Zenith Bank Plc (-0.46%).
The NGX Banking, Oil & Gas, and Consumer Goods indices lost ca 0.21%, 0.15%, and 0.07%, day-on-day, respectively. The NGX Industrial Index closed flat.
First Bank of Nigeria Holdings Plc led the volume chart with ca 28.37 million units while Nestle Nigeria Plc topped the value charts with ca ₦2.71 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦429.38/US$1.00 from ₦430.67/US$1.00, recorded the previous day.
Global oil prices rose after an unexpected drop in US oil and gasoline stockpiles which reassured investors that demand remains solid despite the threat of a global recession. Brent Crude Oil price gained ca 1.32% day-on-day to settle at US$93.53pb, while WTI rose ca 1.86% day-on-day to settle at US$88.14pb as at report time. Spot Gold dipped ca 0.54% day-on-day to close at US$1,780.10 per ounce as of report time.