FIXED INCOME MARKET
Interbank system liquidity declined today, opening with a balance of ₦99.92 billion, significantly lower than the previous day’s opening balance of ca ₦352.75 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) stayed elevated at double-digits to settle at 16.25% and 16.75% respectively.
The NTB secondary market sustained its bearish theme with offers witnessed across 12 December 2022 and 28 September 2023 NTB papers at c.8.00% and 11.50% respectively. Overall, the average rate closed c.8bps higher, day-on-day to settle at 8.91%.
The FGN bonds market endured a calm session, albeit with a bearish undertone amid dearth of buyside activity. Most of the selling interests were observed on 2024s, 2028s, 2032s, 2037s, and 2049s, respectively. Overall, the average yield closed ca 5bps higher, day-on-day to settle at 14.08%.
The SSA Eurobond market witnessed early positive sentiments, with few real buyers seen across all platforms, but buying interest soon reversed amid stalled talks between Ghana and the IMF, alongside US Jobless claims printing higher than expected (219k vs Est. 204k). Overall, the average yield across the Nigerian sovereign curve settled at 13.16%.
The domestic bourse continued to trend southward, with the Nigerian Stock Exchange All Share Index (NGX ASI) losing 3.23% day-on-day to settle at 47,260.89pts, while year-to-date return further reduced to +10.64%. This performance was largely due to sell pressures on stocks such as Airtel Africa Plc (-10.00%), Guaranty Trust Holding Company Plc (-2.02%), and MTN Nigeria Communications Plc (-1.20%), respectively.
The NGX Banking, Industrial, and Consumer Goods Indices shed ca 0.86%, 0.32%, and 0.11%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Guaranty Trust Holding Company Plc led the volume chart with ca 27.73 million units while Geregu Power Plc topped the value charts with ca ₦586.76 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦436.63/US$1.00 from ₦437.50/US$1.00, recorded the previous day.
Global oil prices rose further on the back of OPEC+’s resolve to limit global crude supply by 2 million barrels per day (bpd), the largest drop since 2020. Brent Crude Oil price rose ca 0.47% day-on-day to settle at US$93.81pb, while WTI gained ca 0.39% day-on-day to settle at US$88.10pb as at report time. Spot Gold lost ca 0.23% day-on-day to close at US$1,716.90 per ounce as of report time.