FIXED INCOME MARKET
Interbank system liquidity began the week with a credit balance of ca ₦33.01 billion, a decline from Friday’s balance of ca ₦101.68 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended higher to 11.50% and 12.00% from 8.50% and 9.00%, recorded on Friday.
The NTB secondary market reflected a quiet theme, albeit few interests were recorded on February 2023 OMO papers and 7 September 2023 NTBs papers at c.9.00% levels. Overall, the average yield dipped by ca 3bps day-on-day, to settle at 7.53%.
The FGN bonds secondary market traded mixed sentiments with buying interest recorded on 2042s, 2049s and 2050s, while improved offers were seen across 2025s, 2026s, 2032s, and 2037s. Consequently, the average yield closed ca 8bps higher, to settle at 13.20%.
The Eurobond space was bullish with demand recorded across the SSA markets including Nigerian corporates, amid tomorrow’s US inflation readings. Overall, the average yield across the Nigerian sovereign curve settled at 11.38%.
The domestic bourse closed the first trading day of the week in the red, with selloffs recorded Fidelity Bank Plc (-6.58%), First Bank of Nigeria Holdings Plc (-3.30), and United Bank for Africa Plc (-0.66%). The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.14% day-on-day to settle at 49,626.05pts, while year-to-date return settled at +16.18%.
The NGX Consumer Goods Index gained ca 0.02% while the NGX Banking, and Industrial Indices lost ca 0.45% and 0.29%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Guaranty Trust Holding Company Plc led both the volume and value charts with ca 19.47 million units, traded at ca ₦385.59 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦436.50/US$1.00 from ₦436.33/US$1.00, recorded on Friday.
Global oil prices increased today as Iranian nuclear talks continued to hit obstacles and an embargo on Russian oil exports loomed, with limited supply striving to match robust demand. Brent Crude Oil price gained ca 2.17% day-on-day to settle at US$94.85pb, while WTI rose ca 2.07% day-on-day to settle at US$88.59pb as at report time. Spot Gold gained ca 0.94% day-on-day to close at US$1,744.90 per ounce as of report time.