FIXED INCOME MARKET
Interbank system liquidity opened the day with a credit balance of ca ₦213.13 billion compared to yesterday’s opening balance of ₦26.59 billion. Thus, the Overnight Policy Rate (OPR) trended lower to settle at 14.00% from 14.50% recorded the previous day, while the Overnight Rate (O/N) remained unchanged at 15.00%.
The NTB secondary market witnessed a lull session, as investors and other market players were standoffish amid the ongoing MPC meeting and tomorrow’s NTB auction, where c.141bn will be offered across the usual tenors. Overall, the average rate closed relatively flat, day-on-day to settle at 7.22%.
The FGN bonds market traded mixed to bearish, with notable selling interest across 2029s, 2032s, 2037s, 2042s, 2049s, and 2050s, while little demand was recorded on 2025s, following the release of Q4 2022 FGN bonds issuance calendar where 2025s was replaced with 2029s. Overall, the average yield closed ca 15bps higher, day-on-day to settle at 13.52%.
The Eurobond sustained its weak sentiments with selling interests witnessed across all SSAs and other African markets. It is no surprise that markets are in a jittery mood, with the sell-off in the stock market, volatile currencies, and high bond yields, all signaling low investors’ confidence. Overall, the average yield across the Nigerian sovereign curve settled at 13.41%.
In other news, Angola bucked trend and cut interest rates to 19.5% (previous 20.00%) while Nigeria raised its benchmark rate to 15.50% (previous 14.00%).
The domestic bourse recorded a bearish session, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.06% day-on-day to close at 49,161.45pts, while year-to-date returns dipped to ca +15.09%. Sell pressures were observed on stocks like Unilever Nigeria Plc (-5.38%), Access Holdings Plc (-4.55%), United Bank for Africa Plc (-1.39%), and Guaranty Trust Holding Company Plc (-0.53%) respectively.
The NGX Oil & Gas Index gained ca 0.20% while the NGX Banking and Consumer Goods Indices lost ca 0.65% and 0.06%, day-on-day, respectively. The NGX Industrial Index closed flat.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 38.46 million units while Zenith Bank Plc topped the value charts with ca ₦710.83 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦436.33/US$1.00 from ₦463.88/US$1.00, recorded the previous day.
Global oil prices steadily improved today, supported by supply curbs in the U.S. Gulf of Mexico and a slight fall in the U.S. dollar. Brent Crude Oil price gained ca 1.48% day-on-day to settle at US$85.30pb, while WTI rose ca 1.16% day-on-day to settle at US$77.60pb as at report time. Spot Gold gained ca 0.30% day-on-day to close at US$1,638.40 per ounce as of report time.