FIXED INCOME MARKET
Interbank system liquidity improved significantly to ₦578.57billion from ₦48.40 billion recorded the previous day. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to settle at 15.50% and 16.00% respectively, from 16.50% recorded for both rates yesterday.
The NTB secondary market ended the week on a calm note with mild interest witnessed on 28 September 2023 NTB papers. Overall, the average rate closed ca 3bps lower, day-on-day, to settle at 8.77%.
The FGN bonds market sustained its bearish theme to close the week, with higher offer yields observed across 2037s, 2049s, and 2050s, albeit traded volumes were meagre. Overall, the average yield closed ca 7bps higher, day-on-day to settle at 13.92%.
The Eurobond market ended the week on a relatively positive note with few lifts recorded across the African markets, despite the stock market slide amid global recession fears and the unanimously hawkish tone of the US Fed speakers. Overall, the average yield across the Nigerian sovereign curve settled at 13.86%.
In other news, Kenya’s central bank hiked its benchmark interest rate by its largest margin in seven years. The 75bps increase took rates to 8.25%.
The domestic bourse ended trading activities on a positive note, with the market’s year-to-date returns positioned at ca +14.77%. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.12% day-on-day, to close at 49,024.16pts, with buying interests observed on stocks like Airtel Africa Plc (+9.89%), Access Holdings Plc (+0.51%), and Zenith Bank Plc (+0.21%), respectively.
The NGX Consumer Goods, Banking, and Oil & Gas Indices gained ca 0.57%, 0.41% and 0.03%, day-on-day, respectively. The NGX Industrial Index closed flat.
Guaranty Trust Holding Company Plc led both the volume and value charts with ca 135.62 million units, traded at ca ₦2.41 billion worth of trades
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was maintained at ₦437.03/US$1.00.
Global oil prices remain volatile, supported by a falling dollar and the potential of an OPEC+ agreement to curb crude supply. Brent Crude Oil price dipped ca 0.55% day-on-day to settle at US$88.00pb, while WTI lost ca 1.56% day-on-day to settle at US$79.96pb as at report time. Spot Gold gained ca 0.28% day-on-day to close at US$1,673.20 per ounce as of report time.