FIXED INCOME MARKET
Interbank system liquidity slipped further into the deficit zone, opening with a balance of ca -₦136.79 billion, lower than Friday’s balance of ca -₦79.66 billion. However, with no significant funding needs and additional inflow from OMO maturity worth ca ₦10 billion, the Overnight Policy Rate (OPR) remained unchanged at 16.25% while the Overnight Rate (O/N) trended lower to settle at 16.75% from 17.25%, recorded last Friday.
The NTB secondary market remained bearish with notable selling interest witnessed on 23 February 2023 and 28 September 2023 papers, but bids were scarce amid low system liquidity and tomorrow’s NTB auction. Overall, the average rate closed ca 11bps higher, day-on-day to settle at 8.91%.
The FGN bonds market reflected a bearish theme today with offers witnessed across 2032s, 2036s, 2049s, and 2050s, albeit few demand were recorded on 2037s at 15.40%. Overall, the average yield closed ca 7bps higher, day-on-day to settle at 14.16%.
The SSA Eurobond market observed a lull session as it traded with a downbeat tempo. Risk assets across the SSA were repriced lower on average by 1.25pts amid the latest US jobs data release and potential CPI readings. Overall, the average yield across the Nigerian sovereign curve settled at 13.05%.
The domestic bourse closed on a positive note as a cross trade in BUA Cement Plc (+8.65%) pushed market performance northward. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.45% day-on-day to close at 47,565.92pts, while the year-to-date returns extended to +11.35%. Bargain hunting was also observed on stocks such as United Bank for Africa Plc (+3.70%) and Access Holdings Plc (+2.63%).
The NGX Industrial and Banking Indices gained ca 3.18% and 0.65% while the NGX Oil & Gas and Consumer Goods Indices lost ca 2.41% and 0.10% day-on-day, respectively.
Guaranty Trust Holding Company Plc led both the volume and value charts with ca 38.87 million units, traded at ca ₦659.10 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦441.17/US$1.00 from 439.17/US$1.00, recorded on Friday.
Global oil prices fell as worries of a recession and a spike in COVID-19 cases in China stoked concerns about global crude demand. Brent Crude Oil price lost ca 1.75% day-on-day to settle at US$94.51pb, while WTI dipped ca 1.85% day-on-day to settle at US$89.44pb as at report time. Spot Gold gained ca 0.63% day-on-day to close at US$1,686.30 per ounce as of report time.