FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦220.74 billion lower than Friday’s opening balance of ca ₦279.30 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to settle at 14.50% and 15.17% from 16.17% and 16.50%, recorded on Friday.
The NTB secondary market witnessed a muted theme, with few demand observed on 25 May 2023 and 26 Oct 2023 at 12.40% and 13.95% respectively but offers were scarce. Overall, the average rate closed ca 10bps lower, day-on-day, to settle at 9.23%.
The FGN bonds market traded mixed to bearish sentiments to close the month, with few bids recorded on 2037s while improved offers were seen across the short and mid tenor papers. Consequently, average yield closed c.19bps higher, day-on-day, to settle at 14.69%.
The Eurobond market endured a quiet theme today albeit with a mixed undertone, amid potential interest rate decisions by the US Federal Reserve and the Bank of England (BoE) later this week alongside the US employment data release. Nigeria and Angola opened firmer, with better bids recorded across the curve. Overall, the average yield across the Nigerian sovereign curve settled at 13.95%.
In other news, Ghanaian President, Nana Akufo-Addo, ruled out losses for bond investors as a result of negotiations with the International Monetary Fund for a $3 billion bailout.
The domestic bourse opened the week on a bearish note as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.17% day-on-day to settle at 43,839.08pts, while year-to-date return reduced to +2.63%. This was largely due to sell pressure on stocks like International Breweries Plc (-9.78%), Guaranty Trust Holding Company Plc (-1.68%), Zenith Bank Plc (-0.50%), and MTN Nigeria Communications Plc (-0.05%), respectively.
The NGX Banking, Consumer Goods, and Oil & Gas Indices lost ca 0.80%, 0.38%, and 0.35% day-on-day, respectively. The NGX Industrial Index closed flat.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 19.04 million units, while Seplat Energy Plc topped the value charts with ca ₦1.32 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦443.00/US$1.00 from ₦444.75/US$1.00, recorded on Friday.
Global oil prices extended losses because of China’s weak factory activity and concerns that strict COVID-19 restrictions will reduce crude demand. Brent Crude Oil price lost ca 0.81% day-on-day to settle at US$94.99pb, while WTI dipped ca 1.07% day-on-day to settle at US$86.96pb as at report time. Spot Gold lost ca 0.24% day-on-day to close at US$1,640.90 per ounce as of report time.