FIXED INCOME MARKET
Interbank system liquidity opened with a balance of ca ₦101.68 billion, significantly higher than yesterday’s opening balance of ca ₦58.82 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to 8.50% and 9.00% from 9.67% and 10.17%, recorded the previous day.
The NTB secondary market closed the week with mixed sentiments, as sideways interest was recorded on 24 November 2022 and 7 September 2023 papers at c.8.50% and c.9.00% levels, respectively. Overall, the average yield declined by ca 7bps day-on-day, to settle at 7.53%.
The FGN bonds secondary market witnessed demand across 2049s and 2050s, while selling interest was observed across 2025s, 2026s, 2028s, and 2037s. Consequently, the average yield closed ca 5bps higher, to settle at 13.20%.
The Eurobond space sustained its rally across the major African markets, with Nigeria and Angola papers opening c.0.5pts higher on average and buy interest seen all day (one-way trading). However, Ghana traded lower amid profit-taking by some investors. Overall, the average yield across the Nigerian sovereign curve settled at 11.72%.
The domestic bourse closed the week on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.09% day-on-day to close at 49,695.12pts, while year-to-date returns extended to +16.34%. This performance was due to a keen interest in stocks such as Flourmills Nigeria Plc (+3.41%) and Access Holdings Plc (+2.31%).
The NGX Oil & Gas Index lost ca 0.16% while the NGX Banking, Industrial, and Consumer Goods Indices gained ca 0.87%, 0.15%, and 0.06%, day-on-day, respectively.
Sterling Bank Plc led the volume chart with ca 173.84 million units while United Bank for Africa Plc topped the value charts with ca ₦400.61 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate stayed stable at ₦436.33/US$1.00.
Global oil prices surged on the back of anticipated supply cutbacks, but price movements stayed capped as aggressive interest rate hikes and China’s COVID-19 restrictions weighed on demand. Brent Crude Oil price gained ca 2.60% day-on-day to settle at US$91.47pb, while WTI rose ca 2.82% day-on-day to settle at US$85.90pb as at report time. Spot Gold gained ca 0.25% day-on-day to close at US$1,724.60 per ounce as of report time.