FIXED INCOME MARKET
Interbank system liquidity opened higher today with a balance of ca ₦225.87 billion (buoyed by OMO maturity of ₦35billion), compared to yesterday’s opening balance of ca ₦33.01 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to 7.50% and 8.00% respectively, from 11.50% and 12.00%, recorded the previous day.
The NTB secondary market was relatively calm, albeit with a bullish undertone. Demand was predominantly seen across the mid to long dated papers ( Jan, Feb, Mar, and Sep 2023 papers) but offers were scarce. Overall, the average rate dipped ca 10bps, day-on-day to settle at 7.53%.
Trading in the FGN bonds secondary market was mixed to bullish, with short to mid-dated papers (2025s, 2026s, 2028s, 2035s, and 2036s) seeing the most interest, while the long end was quiet amid scarcity of offers. Consequently, the average yield dipped ca 12bps, to settle at 13.19%.
The Eurobond space endured a bullish theme at the start of today, with lifts recorded across most SSAs, however, higher than expected M-o-M US CPI data (0.1% vs Est. -0.1%) spooked risk assets with most curves (Nigeria, Angola, Ghana, and Egypt) retracing from their highs. Overall, the average yield across the Nigerian sovereign curve settled at 11.73%.
The domestic bourse ended the today’s trading session with a flatline performance, as the Nigerian Stock Exchange All Share Index (NSE ASI) remained stable day-on-day to close at 49,627.72pts, bringing the market’s year-to-date remained at +16.18%.
The NGX Industrial Index gained ca 0.14% while the NGX Banking and Consumer Goods Indices lost ca 0.09% and 0.02%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Zenith Bank Plc led both the volume and value charts with ca 26.74 million units, traded at ca ₦536.65 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦436.04/US$1.00 from ₦436.50/US$1.00, recorded the previous day.
Global oil prices dropped sharply as investor concerns about limited fuel supply ahead of winter were countered by lower demand in China and additional hikes in US and European interest rates. Brent Crude Oil price dipped ca 1.47% day-on-day to settle at US$92.59pb, while WTI declined ca 1.29% day-on-day to settle at US$86.65pb as at report time. Spot Gold lost ca 1.45% day-on-day to close at US$1,715.50 per ounce as of report time.