FIXED INCOME MARKET
Interbank system liquidity opened higher today with a balance of ca ₦269.25 billion, compared to yesterday’s opening balance of ca ₦225.87 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to 7.00% and 7.50% respectively, from 7.50% and 8.00%, recorded the previous day.
The NTB secondary market witnessed a muted theme, with participants staying on the sidelines as the NTB auction took center stage (c.160bn offered across the usual tenors). Mild buying interests was recorded across short to mid-dated papers, but offers were scarce. Thus, the average rate stayed relatively flat, day-on-day to settle at 7.53%.
The FGN bonds secondary market traded bullish, as yields across the FGN local bonds curve declined today, buoyed by coupon inflows (c.N51bn). Major demand was recorded on 2025s, 2026s, 2027s, 2029s, 2049s, and 2050s while mild selling pressure was seen on 2032s, 2037s and 2042s. Consequently, the average yield dipped ca 12bps, to settle at 13.16%.
The Eurobond space opened lower today, sustaining the bearish bias from yesterday’s close which was spurred by the recent US CPI data. Risk assets across the SSAs and other African papers repriced lower, amid the growing possibility of the US Feds hiking the benchmark interest rate by 75bps or more at its next meeting. Overall, the average yield across the Nigerian sovereign curve settled at 11.89%.
The domestic bourse closed bearish as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.10% day-on-day to close at 49,576.05pts, while year-to-date returns reduced to +16.06%. Sell pressures were observed on stocks like Zenith Bank Plc (-2.50%), International Breweries Plc (-1.01%), and Guaranty Trust Holding Company Plc (-0.25%), respectively.
The NGX Banking, Consumer Goods, Industrial Indices lost ca 1.32%, 0.02% and 0.01%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Courteville Business Solutions Plc led the volume traded chart with ca 87.14 million units while Nestle Nigeria Plc led the value traded chart with ca ₦1.63 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦436.50/US$1.00 from ₦436.04/US$1.00, recorded the previous day.
Global Oil Prices steadied following signs of optimistic demand for crude in the recently released International Energy Agency (IEA) report, despite economic headwinds built on the hopes of recovery in China alongside an expected boost in jet fuel demand due to air travel. Brent Crude Oil price gained ca 2.15% day-on-day to settle at US$95.17pb, while WTI rose ca 2.54% day-on-day to settle at US$89.52pb as at report time. Spot Gold lost ca 0.30% day-on-day to close at US$1,712.20 per ounce as of report time.