FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦679.93 billion, compared to yesterday’s opening balance of ca ₦747.90 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) inched up to settle at 12.00% and 12.75% from 9.50% and 10.13%, recorded the previous day.
Activity in the NTB market was muted to close the week, with few interests recorded across September and October 2023 papers. Overall, the average mid-rate closed relatively flat, day-on-day, to settle at 4.38%.
The FGN bonds market witnessed a slight reversal in the bullish sentiment, with better offer yields witnessed across 2029s, 2032s and 2037s. Consequently, the average mid yield closed ca 8bps higher, day-on-day to settle at 13.28%.
With most markets closed for the yuletide season, it was a lull session in the Eurobonds market. Ghana however continued to witness demand from risk players given its extreme cheapness relative to other SSAs. Overall, the average yield across the Nigerian sovereign curve closed at 11.32%.
Trading activity in the domestic bourse was largely bullish, due to the buy sentiments observed on some stocks such as Geregu Power Plc (+10.00%), Zenith Bank Plc (+1.87%), and Guaranty Trust Holding Company Plc (+1.35%), respectively. The Nigerian Stock Exchange All Share Index (NGX ASI) gained ca 0.42% day-on-day to close at 49,706.09pts, while market year-to-date return further extended to ca +16.36%.
The NGX Banking, Oil & Gas, and Industrial Indices gained ca 1.46%, 0.36% and 0.25% while the NGX Consumer Goods Index lost ca 0.10% day-on-day, respectively.
UPDC Real Estate Investment Trust led the volume chart with ca 50.39 million units, while MTN Nigeria Communications Plc topped the value charts with ca ₦1.75 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to settle at ₦456.50/US$1.00 from ₦456.25/US$1.00, recorded the previous day.
Global oil prices maintain an upward trend on the expectation of a decline in Russian crude supply, which helped offset concerns of a hit to U.S. fuel demand. Brent Crude Oil price gained ca 3.00% day-on-day to settle at US$83.41pb, while WTI rose ca 3.51% day-on-day to settle at US$80.21pb as at report time. Spot Gold rose ca 0.59% day-on-day to close at US$1,805.90 per ounce as of report time.