FIXED INCOME MARKET
Interbank system liquidity opened the week in a deficit of ca -₦226.50 billion, significantly lower than Friday’s opening balance of ca -₦158.99 billion. Due to the dearth of liquidity in the system, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) held steady at 16.25% and 16.50%.
The NTB secondary market endured a quiet outing amid the ongoing MPC meeting, albeit few offers were seen on 09 November 2023 papers at c.12.70% levels. Overall, the average rate closed 13bps higher, day-on-day, to settle at 8.51%.
The FGN bonds market traded on a lull, as market players were standoffish. However, few demands were observed on 2034s, 2042s and 2049s but bid/ask spreads were wide. Consequently, the average yield held steady, day-on-day, to settle at 14.56%.
The Eurobond space traded one-way today, with selling interest observed across the African markets amid lower equities opening and the US Fed’s sideways rhetoric. Overall, the average yield across the Nigerian sovereign curve settled at 12.03%.
The domestic bourse opened the week on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.38% day-on-day to close at 44,662.96pts, while year-to-date returns extended to +4.56%. This performance was largely due to keen interest in stocks such as Nigeria Breweries Plc (+9.94%), First Bank of Nigeria Holdings Plc (+1.82%), and Zenith Bank Plc (+1.645), respectively.
The NGX Consumer Goods and Banking Indices gained 1.80% and 1.25% while the NGX Oil & Gas and Industrial Indices lost 0.26% and 0.03%, day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 35.24 million units, while Seplat Energy Plc topped the value charts with ca ₦478.43 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦445.38/US$1.00 from ₦445.67/US$1.00 0, recorded on Friday.
Global oil prices extend losses as supply concerns eased and investors’ worries about China’s fuel consumption and US currency strength weighed on prices. Brent Crude Oil price dipped ca 5.26% day-on-day to settle at US$83.01pb, while WTI lost ca 5.32% day-on-day to settle at US$75.82pb as at report time. Spot Gold dipped ca 0.88% day-on-day to close at US$1,738.90 per ounce as of report time.