FIXED INCOME MARKET
Interbank system liquidity stayed buoyant, to open with a credit balance of ca ₦560.08 billion higher than yesterday’s balance of ca ₦279.05 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 8.67% and 9.00% respectively from 9.33% and 9.83% recorded the previous day.
The NTB secondary market witnessed buying interest on the long end of the curve amid ample liquidity. Bids on September and October 2023 papers dropped to 13.30% levels, while offers hovered around c.13.00%. Overall, the average rate closed ca 10bps lower, day-on-day, to settle at 9.02%.
The FGN bonds market traded bullish, with keen interest recorded on 2032s and 2037s at 14.95% and 15.90% respectively. Consequently, the average yield closed relatively flat, day-on-day, to settle at 14.69%.
The US FOMC meeting scheduled for today took center stage, where a 4th consecutive 75bps rate hike is envisaged amid higher-than-expected JOLTS data. Most traders were standoffish albeit with a bullish undertone, as only a handful of trades was executed across Nigeria, Angola, and Ghana, causing prices to appreciate on average 0.50pt. Overall, the average yield across the Nigerian sovereign curve settled at 13.76%.
The domestic bourse closed the day with positive sentiments as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.23% day-on-day to settle at 44,283.02pts, while year-to-date return extended to +3.67%. The index performance was largely influenced by buy interests on Dangote Cement Plc (+8.84%) and First Bank of Nigeria Holdings Plc (1.01%).
The NGX Industrial and Oil & Gas Indices gained ca 3.98% and 0.21% while the NGX Banking and Consumer Goods Indices lost ca 0.90% and 0.18%, day-on-day, respectively.
Sterling Bank Plc led the volume chart with ca 24.28 million units, while MTN Nigeria Communications Plc topped the value charts with ca ₦238.86 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate stayed stable at ₦446.00/US$1.00.
Global oil prices were relatively stable ahead of the Federal Reserve’s expected rate hike, as market participants fixated on falling US crude stockpiles and impending European sanctions on Russian barrels. Brent Crude Oil price gained ca 1.68% day-on-day to settle at US$96.24pb, while WTI rose ca 2.03% day-on-day to settle at US$90.16pb as at report time. Spot Gold dipped ca 0.01% day-on-day to close at US$1,649.60 per ounce as of report time.