FIXED INCOME MARKET
Interbank system liquidity improved significantly with an opening balance of ca ₦196.99 billion, compared to yesterday’s balance of ₦74.51 billion. Thus, the Overnight Policy Rate (OPR) dipped by 8bps to settle at 16.17% while the Overnight Rate (O/N) remained unchanged at 16.50%.
The NTB secondary market ended the week bearish, with offers on September 2023 papers printing at 13.10% levels, as the selloff persisted in the local fixed income space. Overall, the average rate inched up ca 9bps, day-on-day to settle at 9.11%.
The FGN bonds market witnessed further selloffs albeit buyers were scanty, as market players take position ahead of Monday’s FGN bond auction where N225bn will be offered across 2029s, 2032s, and 2037s, respectively. Overall, the average yield closed ca 12bps higher, day-on-day to settle at 14.36%.
The SSA Eurobond market observed mixed sentiments to close the week, with demand witnessed across the bellies and long dated Nigeria and Angola papers, while Ghana sustained its bearish theme amid weak economic fundamentals. Overall, the average yield across the Nigerian sovereign curve settled at 13.61%.
The domestic bourse recorded a positive session at the close of the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.09% day-on-day to settle at 47,569.04pts, while year-to-date return extended to +11.36%. This was largely due to the cross trade done on MTN Nigeria Communications Plc and buying interest observed in bellwether stocks such as Guaranty Trust Holding Company Plc (+5.60%) and Zenith Bank Plc (+2.30%), respectively.
The NGX Banking Index gained ca 0.65% while the NGX Consumer Goods Index lost ca 0.52%, day-on-day, respectively. The NGX Industrial and Oil & Gas Indices closed flat.
Guaranty Trust Holding Company Plc led the volume chart with ca 34.99 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.21 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦441.38/US$1.00 from ₦441.83/US$1.00, recorded the previous day.
Global oil prices dipped today as recession worries and low oil demand, particularly in China, offset the recent support from the reduction in the OPEC+ supply target. Brent Crude Oil price dropped ca 2.79% day-on-day to settle at US$91.93pb, while WTI lost ca 3.53% day-on-day to settle at US$85.96pb as at report time. Spot Gold lost ca 1.66% day-on-day to close at US$1,649.30 per ounce as of report time.