FIXED INCOME MARKET
Interbank system liquidity opened slightly higher with a balance of ca ₦48.40 billion, compared to the previous day’s opening of ca ₦47.01 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) both settled at 16.50%.
The NTB secondary market adjusted to yesterday’s closing rates at the NTB auction with bids on the newly issued 1-year paper witnessed around c.11.70% to c.11.85%, while offers were seen at 11.30% levels. Overall, average secondary market rate moved up by c.86bps, relative to the previous 1-year NTB closing rate (9.75%).
The FGN bonds market reflected a bearish theme, as selling interests were observed across 2029s, 2037s, 2049s and 2050s, with 2037s touching the 15.00% handle in terms of offers but bids were much wide. Overall, the average yield closed ca 15bps higher, day-on-day to settle at 13.92%.
In the Eurobond space, price moves remained fierce with declines in Angola, Nigeria, Ghana, and Egypt, averaging c.3.10pts due to a combination of global investors’ pessimism, hawkish US Fed comments, and the selloff in the equity markets. Overall, the average yield across the Nigerian sovereign curve settled at 13.78%.
The domestic bourse recorded a bearish session today as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.42% day-on-day to settle at 48,964.83pts, while year-to-date return reduced to +14.63%. This was largely due to selloff sentiments in bellwethers such as Nestle Nigeria Plc (-10.00%), and Guaranty Trust Holding Company Plc (-1.11%).
The NGX Consumer Goods, Banking, and Oil & Gas Indices lost ca 3.22%, 0.15% and 0.03%, day-on-day, respectively. The NGX Industrial Index closed flat.
Jaiz Bank Plc led the volume chart with ca 85.91 million units while Airtel Africa Plc topped the value charts with ca ₦360.04 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦437.03/US$1.00 from ₦436.37/US$1.00, recorded the previous day.
Global oil prices remain fickle, albeit approaching $90/pb on the back of expectations that OPEC+ might cut supply, while a stronger dollar and a bleak economic outlook have held increases in check. Brent Crude Oil price gained ca 0.27% day-on-day to settle at US$89.56pb, while WTI gained ca 0.60% day-on-day to settle at US$82.64pb as at report time. Spot Gold dipped ca 0.10% day-on-day to close at US$1,668.30 per ounce as of report time.