FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of c. ₦ 364.39 billion, significantly lower compared to c. ₦ 679.93 billion recorded on Friday. Nonetheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 10.75% and 10.83% from 12.00% and 12.75% recorded on Friday in the absence of any significant funding obligation.
The NTB market recorded a quiet session, as investors focused on the final NTB auction for 2022, where c.
N 67bn was offered across the usual tenors. Few buyside interests were recorded across the short and mid tenors, while improved offers were seen on Dec 2023 papers. Overall, average rate closed relatively flat at 4.38%.
The FGN bonds market also witnessed a muted theme, with sideways interest observed on the 2029, 2032 and 2037 papers. However, the average mid-yield remained relatively unchanged at 13.21%, as trades were few and far between.
The Eurobond space was relatively mixed, with little to no trade recorded across the SSA and MENA curves, as investors have practically wound down for the year. However, the subtle sentiment is mildly bullish, amid fairly positive equities trading. Overall, the average yield across the Nigerian sovereign curve closed at 11.37%.
Trading activity in the domestic bourse resumed on a bullish note, due to the buy sentiments observed on some stocks such as CHAMPION (+10.00%), CORNERST (+10.00%), and Geregu Power Plc (+9.96%). The Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.46% day-on-day to close at 49,934.60pts, while market year-to-date return further extended to ca +16.90%.
The NGX Banking and Consumer Indices both gained c.1.38% and 1.07% respectively, while the NGX Oil & Gas and Industrial Index remained unchanged from the previous week. VERITASKAP led the volume chart with c.348.54 million units, while GEREGU topped the value charts with c. ₦1.03 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated further to settle at ₦461.33/US$1.00 from ₦456.50/US $1.00, recorded on Friday.
Oil prices fell on Wednesday as concerns about an upsurge in Covid cases in China, the world’s top oil importer, outweighed expectations easing pandemic restrictions would lead to economic recovery and growth in demand for fuel. Brent Crude Oil price lost c.1.72% day-on-day to settle at US$82.89pb, while WTI lost c.1.67% day-on-day to settle at US$78.20pb as at report time. Spot Gold also lost c.0.50% day-on-day to close at US$1,814.70 per ounce as of report time.