FIXED INCOME MARKET
Interbank system liquidity opened positive with a balance of ca ₦120.34 billion, significantly higher than yesterday’s opening balance of ca -₦223.57 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to 13.50% and 13.67% respectively from 14.67% and 15.00%, recorded at yesterday’s session.
The NTB secondary market closed the week on a muted note, albeit few interests were recorded across Dec 2022 to Feb 2023 papers at c.11% to 12.00% levels. Overall, the average rate closed flat, settling at 7.78%.
The FGN bonds market was relatively quiet, however, some bids were recorded on 2042s and 2050s, while selling interest was observed on 2026s, 2027s, and 2032s. Consequently, the average yield closed ca 4bps higher, to settle at 13.18%.
In the Eurobond space, activity was mixed to bearish, especially across some of the SSA markets. Nigeria and Ghana witnessed selloffs, while Angola was mildly bullish. The Jackson Hole symposium was the main event, with market participants reassessing yield direction amid US Fed Powell’s recent speech. Overall, the average yield across the Nigerian sovereign curve settled at 11.77%.
The domestic bourse closed the week on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.04% day-on-day to close at 49,682.15pts, while year-to-date returns extended to +16.31%. This performance was largely due to keen interest in stocks such as Nestle Nigeria Plc (+3.26%), United Bank for Africa Plc (+0.70%), and Guaranty Trust Holding Company Plc (+0.25%).
The NGX Consumer Goods and Oil & Gas Indices gained ca 0.51% and 0.16% while the NGX Banking and Industrial Indices lost ca 0.67% and 0.01%, day-on-day, respectively.
Jaiz Bank Plc led the volume chart with ca 45.91 million units while Nestle Nigeria Plc topped the value charts with ca ₦3.05 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦430.33/US$1.00 from ₦430.67/US$1.00, recorded the previous day.
Global oil prices dipped despite data showing that the US economy contracted at a modest pace in the second quarter. Brent Crude Oil price dipped ca 0.12% day-on-day to settle at US$99.22pb, while WTI lost ca 0.52% day-on-day to settle at US$92.04pb as at report time. Spot Gold dipped ca 1.04% day-on-day to close at US$1,752.90 per ounce as of report time.