FIXED INCOME MARKET
Interbank system liquidity opened higher today with a balance of ca ₦279.05 billion (buoyed by OMO maturity of ₦20billion), compared to yesterday’s opening balance of ca ₦220.74 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to 9.33% and 9.83% respectively, from 14.50% and 15.17%, recorded the previous day.
The NTB secondary market observed bullish sentiments post FAAC credits. Specific interests were observed on September and October 2023 papers at 13.50% and 14.00% respectively, however offers printed much lower. Overall, the average rate closed ca 11bps lower, day-on-day, to settle at 9.12%.
The FGN bonds market was relatively muted, albeit demand was largely seen on 2037s at ca 15.90% – 15.95% as few PFA players sought to grab the bargain offers. Consequently, the average yield closed relatively flat, day-on-day, to settle at 14.69%.
The Eurobond market remained frail with few interests recorded across the African sovereign papers. Ghana, Nigeria, and Angola all witnessed positive sentiments with prices appreciating on average 1.15pts, with the former getting some comfort from the recent encouraging speech by the Ghanaian President, Nana Akufo-Addo. Overall, the average yield across the Nigerian sovereign curve settled at 13.81%.
The bearish trend in the domestic bourse was sustained today, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.21% day-on-day to close at 43,745.73pts, while market year-to-date return reduced further to +2.41%. There were losses recorded in stocks such as Seplat Energy Plc (-8.33%), Stanbic IBTC Plc (-2.61%), and United Bank for Africa Plc (-0.70%), respectively.
The NGX Industrial and Banking Indices gained ca 1.33% and 0.07% while the NGX Oil & Gas and Consumer Goods Indices lost ca 4.31% and 1.58%, day-on-day, respectively.
Access Holdings Plc led the volume chart with ca 24.68 million units, while Seplat Energy Plc topped the value charts with ca ₦2.53 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦446.00/US$1.00 from ₦443.00/US$1.00, recorded the previous day.
Global oil prices witnessed a rebound as a weaker U.S. dollar offset widening COVID-19 curbs in China that have stoked fears of slowing fuel demand. Brent Crude Oil price gained ca 2.10% day-on-day to settle at US$94.76pb, while WTI rose ca 2.11% day-on-day to settle at US$88.36pb as at report time. Spot Gold gained ca 0.37% day-on-day to close at US$1,646.80 per ounce as of report time.