FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦163.77 billion, compared to yesterday’s opening balance of ca ₦168.96 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) inched up to settle at 10.25% and 10.63% from 7.50% and 10.25%, recorded the previous day.
The treasury bills market witnessed sustained demand across the curve amid healthy liquidity status, albeit offers were few and far between as most sellers were standoffish. Overall, the average mid-rate closed c.12bps lower, day-on-day, to settle at 4.45%.
In the FGN bonds market, buyside interest was persistent across 2026s, 2032s, 2037s, and 2049s, with significantly lower offers observed. Thus, the average mid yield closed ca 15bps lower, day-on-day to settle at 13.18%.
The Eurobond space reversed the bearish theme witnessed in the last couple of days amid positive sentiments in the equities markets. Significant demand was recorded across the SSAs and MENAs, with Ghana papers gaining on average c.1.8pts due to its relative cheapness, though there are still major concerns around the creditworthiness of the country. Overall, the average yield across the Nigerian sovereign curve closed at 11.53%.
In other news, the economy of Ghana advanced by 2.9% from a year earlier in the third quarter of 2022, decelerating from a downwardly revised 4.7% rise in the previous three-month period. Also, S&P cut Ghana’s rating to default amid suspension of Eurobond payment.
The domestic bourse reflected a bullish theme, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.12% day-on-day to close at 49,475.43pts, while year-to-date returns extended to +15.82%. This performance was largely due to keen interest in stocks like First Bank of Nigeria Holdings Plc (+3.74%), Guaranty Trust Holding Company Plc (+1.85%), and Zenith Bank Plc (+0.21%), respectively.
The NGX Banking, Oil & Gas, and Consumer Goods Indices gained 0.22%, 0.08% and 0.05%, day-on-day, respectively. The NGX Industrial Index closed flat.
UPDC Real Estate Investment Trust led the volume chart with ca 245.33 million units, while Geregu Power Plc topped the value charts with ca ₦2.63 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to settle at ₦456.33/US$1.00 from ₦452.67/US$1.00, recorded the previous day.
Global oil prices increased further, lifted by reports from the American Petroleum Institute (API) indicating a larger-than-expected drawdown in US crude stockpiles, although gains continue to be limited by mounting concerns about China. Brent Crude Oil price gained ca 2.18% day-on-day to settle at US$81.73pb, while WTI rose ca 2.16% day-on-day to settle at US$77.89pb as at report time. Spot Gold gained ca 0.24% day-on-day to close at US$1,829.70 per ounce as of report time.