FIXED INCOME MARKET
Interbank system liquidity slightly improved with an opening balance of ca ₦94.13 billion, higher than yesterday’s opening balance of ca ₦43.19 billion, as the repayment of OMO maturities worth ca ₦25.00 billion hit the system. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 14.75% and 15.75% from 13.75% and 14.13%, recorded on the previous day.
Treasury Bills
The treasury bills market witnessed sustained demand for 29-May-2023 CBN Special bill and 23-November-2023 NTB paper at 9.00% and 13.00%, respectively, however offers were scarce amid a fairly liquid market. Overall, the average rate closed ca 20bps lower, day-on-day, to settle at 7.96%.
Bonds
The FGN bonds market observed mixed interests on 2027s, 2032s, and 2050s, albeit traded volumes were few and far between. Thus, the average mid-yield closed marginally lower by ca 1bp, day-on-day, to settle at 14.70%.
Eurobonds
The Eurobond market traded positive sentiment today with greens recorded across Nigeria, Ghana, Angola, and Egypt, amid a rebound in the stock markets. However, there are still subtle concerns around the Fed chatters, as they warned of an underestimation of higher rates and insisted that more work needs to be done to curb inflationary pressures. Overall, the average yield across the Nigerian sovereign curve settled at 11.35%.
Equities
The domestic bourse sustained bearish sentiments as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.24% day-on-day to close at 47,322.97pts, while year-to-date returns further reduced to +10.78%. This can be attributed to the profit taking on stocks like Access Holdings Plc (-3.53%), Zenith Bank Plc (-1.36%), and Guaranty Trust Holding Company Plc (-0.25%), respectively.
The NGX Industrial Index gained ca 0.12% while the NGX Banking and Consumer Goods indices lost ca 2.14% and 0.99% day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 34.59 million units, while MTN Nigeria Communications Plc topped the value charts with ca ₦354.28 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦445.00/US$1.00 from ₦444.70/US$1.00, recorded the previous day.
Commodities
Global oil prices rose on expectations that China might ease its Covid-19 regulations following mass protests on the country’s zero-Covid policy. Brent Crude Oil price gained ca 2.57% day-on-day to settle at US$85.33pb, while WTI rose ca 2.54% day-on-day to settle at US$79.20pb as at report time. Spot Gold gained ca 0.81% day-on-day to close at US$1,769.60 per ounce as of report time.