FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦236.67 billion, slightly lower than the previous day’s opening of c.₦297.92 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended higher to 9.67% and 10.17% respectively, from 7.00% and 7.25%, recorded the previous day.
The NTB secondary market traded bullish to close the week, with demand seen across some NTB papers, particularly 9 March 2023, 7 and 14 September 2023 papers at c.7.00%, 8.70%, and 8.75% respectively. Overall, the average rate closed c.10bps lower, day-on-day to settle at 7.22%.
The FGN bonds market observed a calm session, albeit few demand were observed on 2042s at c.13.65% while improved offers were seen on 2037s and 2050s at c.13.75% and c.13.30% respectively. Consequently, the average yield closed c.5bps higher, to settle at 13.13%.
The Eurobond space closed the week on a bearish note, amid negative equities trading and weak sentiments ahead of next week’s US Fed meeting. All SSAs traded lower, with selling interest observed across the curve. Overall, the average yield across the Nigerian sovereign curve settled at 12.22%.
The domestic bourse closed trading activities in the red, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.13% day-on-day to close at 49,475.42pts, while year-to-date returns receded to 15.82%. Profit-taking activities leaned on stocks like Access Holdings Plc (-5.14%), Stanbic IBTC Holdings Plc (-1.67%), and First Bank of Nigeria Holdings Plc (-1.48%), respectively.
The NGX Consumer Goods Index gained c. 0.02% while the NGX Banking Index lost c. 1.39% day-on-day, respectively. The NGX Industrial and Oil & Gas Indices closed flat.
First Bank of Nigeria Holdings Plc led the volume traded chart with ca 12.02 million units while Zenith Bank Plc led the value traded chart with ca ₦235.91 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦436.25/US$1.00 from ₦436.88/US$1.00, recorded the previous day.
Global oil prices rebounded from the previous day’s losses but are on course for a third consecutive weekly loss due to concerns about steep interest rate rises, which are likely to hamper global economic growth and fuel consumption. Brent Crude Oil price gained ca 1.65% day-on-day to settle at US$92.33pb, while WTI rose ca 1.36% day-on-day to settle at US$86.26pb as at report time. Spot Gold gained ca 0.42% day-on-day to close at US$1,684.40 per ounce as of report time.