FIXED INCOME MARKET
Interbank system liquidity remained buoyant, with a balance of c.₦297.92 billion, up from yesterday’s position of c.₦269.25 billion. Thus, the Overnight Policy Rate (OPR) stayed stable at 7.00% while the Overnight Rate (O/N) trended lower to settle at 7.25% from 7.50%, recorded the previous day.
The NTB secondary market endured a quiet session, albeit with a bullish bias due to surfeit system liquidity. There was demand for the newly issued 1-year paper at c.9.10% while market offers were at c.8.65%. Overall, the average rate closed c.9bps lower, day-on-day to settle at 7.44%.
The FGN bonds market witnessed a calm outing, as investors stayed cautious ahead of Monday’s bonds auction. Nonetheless, mild demand for 2042s, 2049s and 2050s filtered through the market as the day progressed, with a handful of trades executed due to the dearth of offers at c.13.62%, 13.24% and 13.25% respectively, while there were firm offers for 2032s and 2037s. Consequently, the average yield dipped c.7bps, to settle at 13.09%.
The Eurobond space observed mixed sentiments with sideways interest recorded across the African curves. Demand was seen across front-end Nigeria, Ghana, and long-end Egypt papers, while Angola traded relatively flat. The US PPI printing at -0.1%, aligned with market expectation, as such, the equities market opened higher (S&P +0.6%), easing yesterday’s bearish pressures. Overall, the average yield across the Nigerian sovereign curve settled at 11.95%.
The domestic bourse sustained bearish sentiments as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.07% day-on-day to close at 49,540.48pts, while year-to-date returns dipped to +15.98%. Profit-taking activities hit stocks like Access Holdings Plc (-2.23%), International Breweries Plc (-2.04%), and Guaranty Trust Holding Company Plc (-0.25%), respectively.
The NGX Consumer Goods, Oil & Gas, and Banking Indices lost ca 0.26%, 0.16% and 0.09%, day-on-day, respectively. The NGX Industrial Index closed flat.
Courteville Business Solutions Plc led the volume traded chart with ca 38.81 million units while Access Holdings Plc led the value traded chart with ca ₦249.36 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦436.88/US$1.00 from ₦436.50/US$1.00, recorded the previous day.
Global oil prices fell today as weaker demand and a strong US currency ahead of a possibly major interest rate hike offset supply concerns. Brent Crude Oil price dipped ca 4.01% day-on-day to settle at US$90.37pb, while WTI lost ca 4.05% day-on-day to settle at US$84.90pb as at report time. Spot Gold fell ca 1.90% day-on-day to close at US$1,676.60 per ounce as of report time.