FIXED INCOME MARKET
Interbank system liquidity opened lower with a balance of c.₦ 164.24 billion compared to c.₦ 325.63 billion recorded yesterday, as debits for the NTB auction settlement hit the system. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rate closed higher at 10.88% and 11.00% respectively from 10.00% and 10.28% recorded the previous day.
The treasury bills market witnessed a bullish session, with market players bidding heavily across the mid to long dated papers, especially the newly issued 1-year paper ( the 7 Dec 2023 Bill). We witnessed bids range from 11.50% early in the trading session but settled at 11.00% levels, while offers slipped to 10.80% levels (more than 200bps lower compared to the stop rate). Overall, average mid-rate declined significantly by c.2.40%.to settle at 5.08%.
The FGN bonds market also reflected a bullish theme, with buyside interests recorded across the yield curve, especially the 2024, 2025, 2026, 2032, 2037, 2049 and 2050 papers, buoyed by the notion that next week’s FGN bond auction might close lower compared to the previous month, based on the outcome of yesterday’s NTB auction. Consequently, the average mid-yield closed lower by c.31bps, to settle at 14.14%.
Renewed buyside interest filtered through the Eurobond market at today’s session after consecutive days of selloffs. The Nigerian, Angolan and Egypt markets recorded ample demand, thus causing an average price appreciation of c.1.10pts. Overall, the average yield across the Nigerian sovereign curve closed at 11.37%
The domestic bourse reversed its trend into negative territory, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost c.0.13% day-on-day to close at 48,365.14pts, while year-to-date returns trimmed down to +13.22%. Selling activities on bellwethers like MTNN (-2.27%), FBNH (-0.93%) and GTCO (-0.48%) drove the index southwards.
The NGX Banking and Industrial Indices gained c.0.46% and 1.11% respectively while the NGX Consumer Index lost c.0.01% day-on-day. The NGX Oil & Gas Index remained unchanged from the previous day. ETI led the volume chart c.26.36 million units while MTNN led the value charts with c.₦1.19 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate continued to depreciate to ₦446.00/US$1.00 from ₦445.83/US$1.00 recorded the previous day.
Oil rebounded on Thursday after four sessions of decline, boosted by hopes that easing anti-COVID measures in China will revive demand and by signs that some tankers carrying Russian oil have been delayed after a G7 price cap came into effect. Brent Crude Oil price gained c.0.21% day-on-day to settle at US$77.37pb, while WTI gained c.1.50% day-on-day to settle at US$73.08pb as at report time. Spot Gold gained c.0.38% day-on-day to close at US$1,804.70 per ounce as of report time.