FIXED INCOME MARKET
Interbank system liquidity opened significantly lower at ca ₦25.50 billion long ( due to last week’s Retail FX auction and CRR debits), compared to ca ₦236.67 billion recorded on Friday. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended higher to settle at 10.33% and 10.83% respectively, from 9.67% and 10.17%, recorded on Friday.
The NTB secondary market traded on a calm note, albeit with sideways interest recorded across March 2023 and September 2023 NTB papers. Overall, the average rate closed relatively flat, day-on-day to settle at 7.22%.
The FGN bonds market witnessed a muted theme, as focus shifted to the bond auction where ca 225bn was offered across 3 maturities (2025s, 2032s and 2037s). Consequently, the average yield remained unchanged, to settle at 13.08%.
The Eurobond space endured weak sentiments, with sparse volumes traded due to the UK holiday (Queen Elizabeth II funeral). Market participants continue to take mixed stance ahead of this week’s US Fed meeting. Overall, the average yield across the Nigerian sovereign curve settled at 12.19%.
The domestic bourse opened the week with negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.07% day-on-day to close at 49,440.21pts, while year-to-date returns dipped to ca +15.74%. This was supported by sell pressure on stocks like Seplat Energy Plc (-3.85%), and Guaranty Trust Holding Company Plc (-0.25%).
The NGX Oil & Gas Index lost ca 1.94% while the NGX Banking and Consumer Goods Indices gained ca 0.28% and 0.17%, day-on-day, respectively. The NGX Industrial Index closed flat.
First Bank of Nigeria Holdings Plc led the volume traded chart with ca 9.67 million units while Seplat Energy Plc led the value traded chart with ca ₦615.12 million worth of trades
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated marginally to ₦436.50/US$1.00 from ₦436.25/US$1.00, recorded on Friday.
Global oil prices fell on the back of the anticipation of lower crude demand and firm US currency ahead of a likely significant interest rate hike; however, the existing supply concerns curbed the slide. Brent Crude Oil price lost ca 0.47% day-on-day to settle at US$90.92pb, while WTI dipped ca 0.47% day-on-day to settle at US$84.71pb as at report time. Spot Gold lost ca 0.12% day-on-day to close at US$1,681.50 per ounce as of report time.