FIXED INCOME MARKET
Interbank system liquidity slipped further into the negative zone, with an opening balance of ca – ₦158.99 billion, lower than yesterday’s balance of ca -₦129.86 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) settled at 16.25% and 16.50%, unchanged from the previous day’s rates.
The NTB secondary market traded on a somber note, with major axes recorded on October 2023 and 09 November 2023 papers, albeit offers c.12.40% were wide from bids c.12.75% levels. Overall, the average rate closed 10bps lower, day-on-day, to settle at 8.38%.
The FGN bonds market sustained its bullish momentum, with keen interests recorded on 2029s, 2037s, 2042s, and 2049s, respectively. Consequently, the average mid-yield closed c.10bps lower, day-on-day, to settle at 14.56%.
The Eurobond space was relatively quiet, as the market is still digesting the latest comment by the Fed governor Bullard on expected pivot level for the benchmark interest rate (suggested a 5.00% – 5.25% band). Thus, the Nigeria, Ghana, Angola, and Egypt papers all recorded minimal movements across the curve. Overall, the average yield across the Nigerian sovereign curve settled at 11.77%.
The domestic bourse closed the day on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.09% day-on-day to settle at 44,492.73pts, while year-to-date return extended to +4.16%. Buy interest was seen in stocks such as Nigeria Breweries Plc (+10.00%), MTN Nigeria Communications Plc (+4.79), and First Bank of Nigeria Holdings Plc (+3.77%), respectively.
The NGX Consumer Goods, Banking, and Oil & Gas Indices gained 1.27%, 0.48%, and 0.42%, day-on-day, respectively. The NGX Industrial Index closed flat.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 24.36 million units, while First Bank of Nigeria Holdings Plc topped the value charts with ca ₦237.35 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦445.67/US$1.00 from ₦445.75/US$1.00, recorded the previous day.
Global oil prices dipped weighed down by concerns about weak fuel demand in China and potential interest rate hikes by the US Federal Reserve. Brent Crude Oil price dipped ca 2.51% day-on-day to settle at US$87.53pb, while WTI lost ca 2.49% day-on-day to settle at US$79.67pb as at report time. Spot Gold dipped ca 0.23% day-on-day to close at US$1,758.90 per ounce as of report time.