FIXED INCOME MARKET
Interbank system liquidity opened the week with a credit balance of ca ₦43.19 billion, significantly lower than Friday’s balance of ca ₦308.27 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 13.75% and 14.13% from 12.25% and 12.63%, recorded on Friday.
The treasury bills market traded bullish, as investors expressed keen interest on March to June 2023 NTBs alongside 23 November 2023 paper. Overall, the average rate closed ca 15bps lower, day-on-day, to settle at 8.16%.
The FGN bonds market witnessed demand on 2026s and 2034s, while slightly improved offers were seen on 2025s, 2027s, 2029s, and 2032s, respectively. Thus, the average mid-yield closed lower by ca 4bps, day-on-day, to settle at 14.71%.
The Eurobond space observed weak sentiments as Nigeria, Ghana, and Angola papers traded lower – setting a nervous market mood heading towards December, due to the unrest in China over COVID-19 restrictions. Overall, the average yield across the Nigerian sovereign curve settled at 11.54%.
In other news, S&P affirmed Angola at B- (outlook stable), Ghana’s gross reserves fell to 2.9 months import cover $6.67bn (compared to Angola reserves $13.4bn, 7 months import cover) and increased its benchmark interest rate by 250bps to 27%; Est. 26.25%
The domestic bourse closed trading activities on a bearish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.25% day-on-day, to close at 47,436.45pts, while market year-to-date return reduced to 11.05%. This performance was largely due to sell activity on bellwethers like Access Holdings Plc (-1.16%) and Guaranty Trust Holding Company Plc (-0.25%), respectively.
The NGX Oil & Gas and Consumer Goods indices gained ca 0.09% and 0.02% while the NGX Industrial and Banking indices lost ca 1.31% and 0.22% day-on-day, respectively.
Regency Assurance Plc led the volume chart with ca 97.63 million units, while BUA Cement Plc topped the value charts with ca ₦268.67 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦444.70/US$1.00 from ₦446.33/US$1.00, recorded on Friday.
Global oil prices fell to their lowest levels this year as mass protests in China against strict Covid-19 regulations fueled concerns about crude demand. Brent Crude Oil price lost ca 1.58% day-on-day to settle at US$82.31pb, while WTI dipped ca 0.97% day-on-day to settle at US$75.45pb as at report time. Spot Gold lost ca 0.49% day-on-day to close at US$1,745.40 per ounce as of report time.