FIXED INCOME MARKET
The interbank rates remained elevated at double-digit levels as the Overnight Policy Rate (OPR) and Overnight Rate (O/N) held steady at 16.33% and 16.50%, respectively, reflecting the continued dearth of liquidity in the system.
The NTB secondary market had a quiet outing, albeit few demand were recorded on November Special bills and 28 September 2023 ahead of Wednesday’s primary market auction. Overall, the average rate closed relatively flat, day-on-day, to settle at 9.51%.
The FGN bonds market observed mixed sentiments with sideways interest recorded across 2037s, 2042s, 2049s, and 2050s. Overall, the average yield closed ca 7bps, day-on-day, to settle at 14.40%.
The Eurobond space observed a somewhat bullish theme as demand was recorded across Nigeria and Angola curves, despite Moody’s downgrade of Nigeria to B3 from B2 on worsening government finances. However, Ghana continued to trade at lower prices amid ongoing IMF talks. Overall, the average yield across the Nigerian sovereign curve settled at 14.84%.
The domestic bourse recorded a positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.15% day-on-day to settle at 44,461.63pts, while year-to-date return extended to +4.09%. Buy interest was observed on MTN Nigeria Communications Plc (+1.28%), which triggered a positive trend at today’s session.
The NGX Industrial Index gained ca 0.22% while the NGX Oil & Gas, Banking, and Consumer Goods Indices lost ca 0.38%, 0.37%, and 0.28%, day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 11.35 million units, while Airtel Africa Plc topped the value charts with ca ₦1.49 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦441.38/US$1.00 from ₦441.67/US$1.00, recorded on Friday.
Global oil prices fell after weak U.S. business activity data lowered expectations for more aggressive interest rate hikes, while data from China showed a reduction in crude demand in September. Brent Crude Oil price dipped ca 0.46% day-on-day to settle at US$93.07pb, while WTI lost ca 0.61% day-on-day to settle at US$84.53pb as at report time. Spot Gold lost ca 0.02% day-on-day to close at US$1,655.80 per ounce as of report time.