FIXED INCOME MARKET
Interbank system liquidity remained negative with an opening balance of ca -₦63.07 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) remained at double-digit levels to settle at 16.25% and 16.75%, respectively, the same as the previous day’s rates.
The NTB secondary market was relatively quiet as participants focused on the NTB auction where c.N190bn was offered across the usual tenors. However, few offers were observed on 28 September 2023 at 11.80%, but bids were much higher. Overall, the average rate was stable, day-on-day to settle at 8.91%.
The FGN bonds market observed a calm session with a bearish undertone. Higher offer yields were witnessed across the curve amid dearth of liquidity and the expectation of an increase in stop rates at the NTB auction. Overall, the average yield closed ca 9bps higher, day-on-day to settle at 14.25%.
The SSA Eurobond market was mixed to bearish, as early retail demand recorded across the SSAs turned bearish later on, amid higher than expected September US Producer Price Index. Overall, the average yield across the Nigerian sovereign curve settled at 13.14%.
The domestic bourse observed bearish sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.07% day-on-day to close at 47,531.84pts, while year-to-date returns dropped to +11.27%. This performance leaned to slight profit-taking activities in Bellwethers like Access Holding Plc (-0.64%) and Guaranty Trust Holding Company Plc (-0.59%).
The NGX Oil & Gas Index gained ca 0.35% while the NGX Banking and Consumer Goods Indices lost ca 0.31% and 0.05%, day-on-day, respectively. The NGX Industrial Index closed flat.
Mutual Benefits Assurance Plc led the volume chart with ca 41.92 million units while Dangote Cement Plc topped the value charts with ca ₦2.06 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦440.67/US$1.00 from ₦441.17/US$1.00, recorded the previous day.
Global oil prices extended losses as a bleak economic outlook and strong dollar offset supply fears raised by OPEC+’s output cut last week. Brent Crude Oil price lost ca 2.60% day-on-day to settle at US$91.84pb, while WTI dipped ca 3.08% day-on-day to settle at US$86.60pb as at report time. Spot Gold lost ca 0.66% day-on-day to close at US$1,674.90 per ounce as of report time.