FIXED INCOME MARKET
Interbank system liquidity opened the week with a credit balance of ca ₦351.13 billion, compared to Friday’s balance of ca ₦470.14 billion. However, with no significant funding, the Overnight Policy Rate (OPR) and Overnight (ON) rates held steady at 8.50% and 8.83% respectively, unchanged from Friday.
The NTB secondary market traded on a quiet note, albeit with an overall bullish theme. Interest was majorly seen on September 2023 NTBs and March 2023 NTBs & CBN Special bills. Overall, the average rate closed ca 15bps lower, day-on-day, to settle at 8.77%.
The FGN bonds market reflected a muted theme with thin flows recorded across the curve. Most buy-side interests were skewed to 2025s, 2026s, and 2037s. Consequently, the average yield closed ca 2bps lower, day-on-day, to settle at 14.67%.
With the US stock market starting the week on a positive note, the African Eurobond market reacted with sustained buying recorded across the curves. Renewed investors’ interest ensured prices expanded on average c.2.5pts with Nigeria, Angola, and Ghana leading the park. Overall, the average yield across the Nigerian sovereign curve settled at 12.59%.
We expect the Fed rhetoric to fill the week with official speakers today, Wednesday and Thursday. Also, the U.S. CPI data is expected to be released on Thursday, with market forecast pointing to a lower reading.
The domestic bourse recorded a flattish performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) held steady day-on-day to settle at 44,269.18pts, while year-to-date returns remain unchanged at 2.63%. Buy interest was observed on bellwethers like Access Bank Holdings Plc (+1.89%) and Zenith Bank Plc (0.76%), respectively.
The NGX Banking and Industrial Indices gained ca 0.48% and 0.01% while the NGX Oil & Gas and Consumer Goods Indices lost ca 0.74% and 0.04%, day-on-day, respectively. Zenith Bank Plc led the volume chart with ca 15.13 million units while Geregu Power Plc topped the value charts with ca ₦1.20billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate held steady at ₦445.50/US$1.00.
Global oil prices near $100 per barrel as a weaker dollar and recovering Chinese crude imports offset demand concerns linked to China’s strict Covid containment strategy. Brent Crude Oil price gained ca 0.64% day-on-day to settle at US$99.20pb, while WTI rose ca 0.86% day-on-day to settle at US$93.41pb as at report time. Spot Gold gained ca 0.30% day-on-day to close at US$1,681.60 per ounce as of report time.