FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ₦352.75 billion. However, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) stayed stable at 16.25% and 16.75% respectively, unchanged from the previous day.
The NTB secondary market traded on a quiet note today, with few selling interests observed on March 2023, April 2023, and 28 September 2023 NTB papers. Overall, the average rate closed c.5bps higher, day-on-day to settle at 8.82%.
The FGN bonds market traded mixed to bearish, with notable selling interest across 2024s, 2032s, 2036s, 2037s, and 2050s, while little demand was observed on 2025s, 2026s, and 2028s. Overall, the average yield closed ca 11bps higher, day-on-day to settle at 14.03%.
The Eurobond space opened on a weaker note today, taking a pause from the rally driven by bets for less hawkish central banks amid slower growth prospects and seeking more evidence that inflation is moderating. Overall, the average yield across the Nigerian sovereign curve settled at 13.25%.
The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.09% day-on-day to close at 48,836.70pts, while the market year-to-date return dipped to ca +14.33%. This performance leaned heavily on profit-taking activities in stocks like Cadbury Nigeria Plc (-9.93%), Guaranty Trust Holding Company Plc (-1.70%), and Zenith Bank Plc (-1.55%), respectively.
The NGX Banking, Oil & Gas, and Consumer Goods Indices shed ca 0.98%, 0.27%, and 0.18%, day-on-day, respectively. The NGX Industrial Index closed flat.
Chams Holding Company Plc led the volume chart with ca 25.50 million units while Geregu Power Plc topped the value charts with ca ₦935.00 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦437.50/US$1.00 from ₦437.25/US$1.00, recorded the previous day.
Global oil prices improved today, supported by OPEC+ decision to cut back on production output by 2 million barrels per day from November. Brent Crude Oil price rose ca 1.93% day-on-day to settle at US$93.57pb, while WTI gained ca 1.72% day-on-day to settle at US$88.01pb as at report time. Spot Gold gained ca 1.84% day-on-day to close at US$1,733.40 per ounce as of report time.