FIXED INCOME MARKET
Interbank system liquidity opened lower with a credit balance of ₦106.89 billion, compared to yesterday’s opening balance of ca ₦136.81 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rate closed lower at 9.63% and 10.50% respectively from 11.63% and 11.75%, recorded the previous day.
Activity in the treasury bills market was muted, albeit few interests were recorded across 07-Dec-2023 NTB, 17-Apr-2023 CBN Speb, 14-Mar-2023 and 04-Jul-2023 OMO bills. Overall, the average mid-rate closed c.5bps lower, day-on-day, to settle at 4.75%.
The FGN bonds market endured a quiet theme as well, with mild demand recorded on 2034s and 2037s. Thus, the average mid yield closed relatively flat, day-on-day to settle at 13.46%.
The Eurobond space traded on a soft note amid the recent meetings by the major central banks regarding the trajectory of interest rates. Thus, the SSAs and MENAs witnessed lower pricing, averaging c.1.00pts across the curves. Overall, the average yield across the Nigerian sovereign curve closed at 11.46%.
The domestic bourse closed today’s trading on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained ca 0.17% day-on-day to close at 49,316.29pts, while market year-to-date returns further extended to ca +15.45%. This performance leaned heavily to buy interest in Bellwethers like Zenith Bank Plc (+2.55%) and Guaranty Trust Holding Company Plc (+1.95%), respectively.
The NGX Banking and Consumer Goods Indices gained 1.09% and 0.08%, while the NGX Oil & Gas Index lost 0.11% day-on-day, respectively. The NGX Industrial Index closed flat.
Zenith Bank Plc led both the volume and value charts with ca 14.13 million units, traded at 338.03 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to settle at ₦451.50/US$1.00 from ₦451.33/US$1.00, recorded the previous day.
Global oil prices dipped as the market weighed the impact of central bank interest rate rises but remain on track for a weekly gain due to supply disruption concerns and optimism for a rebound in China demand. Brent Crude Oil price lost ca 3.16% day-on-day to settle at US$78.64pb, while WTI dipped ca 2.98% day-on-day to settle at US$73.84pb as at report time. Spot Gold gained ca 0.67% day-on-day to close at US$1,799.70 per ounce as of report time.