FIXED INCOME MARKET
FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a balance of ₦26.59 billion, higher than Friday’s negative balance of ca -₦169.99 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to settle at 14.50% from 14.83% recorded on Friday, while the Overnight Rate (O/N) remained unchanged at 15.00%.
The NTB secondary market endured a quiet session amid the ongoing MPC meeting, albeit there were offers witnessed across November 2022, 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 traded mixed to bearish with sideways interest witnessed across 2025s, 2027s, 2028s, 2037s, 2042s, and 2050s. Overall, the average yield closed ca 5bps higher, day-on-day to settle at 13.37%.
The trend in the Eurobond space was bearish as fears of faster inflation and global recession continued to rise. While a bottom is not yet likely in place and bond yields are still on the upward trajectory, some asset managers see value at current levels and continue to snap up the bargain deals. Overall, the average yield across the Nigerian sovereign curve settled at 13.21%.
The domestic bourse recorded a positive session at the start of the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.39% day-on-day to close at 46,218.35pts, while year-to-date returns extended to +15.22%. This performance was due to the keen interest in bellwethers such as Guaranty Trust Holding Company Plc (+1.89%) and Zenith Bank Plc (+0.25%), respectively.
The NGX Industrial and Banking Indices gained ca 1.89% and 0.52% while the NGX Consumer Goods and Oil & Gas Indices lost ca 0.58% and 0.34%, day-on-day, respectively.
Courteville Business Solutions Plc led the volume chart with ca 24.36 million units while Zenith Bank Plc topped the value charts with ca ₦177.13 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦463.88/US$1.00 from ₦436.33/US$1.00, recorded on Friday.
Global oil prices dropped as recession worries weigh on investor sentiments and the US currency soars. Brent Crude Oil price dipped ca 1.31% day-on-day to settle at US$85.01pb, while WTI lost ca 1.30% day-on-day to settle at US$77.72pb as at report time. Spot Gold fell ca 0.88% day-on-day to close at US$1,641.10 per ounce as of report time.