FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦509.01 billion, a decline from yesterday’s balance of ca ₦560.08 billion. Nonetheless, with no significant funding, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 8.50% and 8.83% respectively, from 8.67% and 9.00% recorded the previous day.
The NTB secondary market sustained its bullish theme, with demand witnessed across the mid to long dated papers, buoyed by surfeit system liquidity. Overall, the average rate closed ca 10bps lower, day-on-day, to settle at 8.92%.
The FGN bonds market reflected a quiet theme, albeit few demands were observed on 2025s, 2032s, and 2037s at 14.80%, 14.95%, and 15.90% respectively. Consequently, the average yield closed relatively flat, day-on-day, to settle at 14.69%.
Yesterday, the Fed chair Powell dismissed any glimmer of hope of a dovish Fed, after indicating the hike would persist to higher levels than previously anticipated albeit at a slower pace. Thus, risk-off sentiments ensued in the Equities market and spilled over to the Eurobond space today, as the African curves opened c.1.00pts lower. Nigeria and Angola curves witnessed selling interests, while Ghana and Egypt were bought down across the curve amid renewed investors’ interests. Overall, the average yield across the Nigerian sovereign curve settled at 14.14%.
In other news, the Bank of England voted by a majority of 7 – 2 to raise interest rates by 75 bps to 3% during its November meeting, the largest rate hike since 1989, increasing the cost of borrowing to the highest level since late 2008.
The domestic bourse recorded a bearish performance today as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.10% day-on-day to settle at 44,236.70pts, while year-to-date return reduced to +3.56%. This was largely due to selloff sentiments in bellwether stocks such as Nigerian Breweries Plc (-0.99) and Zenith Bank Plc (-0.25%).
The NGX Banking and Industrial Indices gained ca 0.05% and 0.01% while the NGX Oil & Gas and Consumer Goods Indices lost ca 0.76% and 0.21%, day-on-day, respectively.
Access Holdings Plc topped both the volume and value charts with ca 112.33 million units traded at ca ₦892.56 million
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to settle at ₦445.75/US$1.00 from ₦446.00/US$1.00, recorded the previous day.
Global oil prices fell as US interest rate hikes pushed up the dollar and heightened fears of a global recession, though losses were limited by supply concerns. Brent Crude Oil price dipped ca 0.73% day-on-day to settle at US$95.46pb, while WTI lost ca 1.09% day-on-day to settle at US$89.02pb as at report time. Spot Gold dipped ca 1.24% day-on-day to close at US$1,629.50 per ounce as of report time.