FIXED INCOME MARKETS
Interbank system liquidity opened lower with a credit balance of c.₦ 584.67billion, compared to yesterday’s opening balance of c.₦ 701.38 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) closed higher to settle at 11.75% and 11.33% from 9.50% and 9.83% recorded the previous day.
The treasury bills market closed the year on a bullish note, with demand recorded across Feb 2023 CBN Special Bill, Sep 2023 and Dec 2023 OMO papers. Consequently, the average mid-rate closed c.7bps lower at 4.23%.
The FGN bonds market witnessed sideways interest across 2037s, 2042s and 2049s, however executed trade volumes were few and far between amid year-end book-keeping. Thus, the average mid-yield remained relatively unchanged at 13.16%.
The Eurobond space remained calm, with lighter than average trade volumes on the final trading day in 2022, due to the holidays. Overall, the average yield across the Nigerian sovereign curve closed flat at 11.38%.
The equities market closed the year with positive sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) rose by c.1.89% day-on-day to close at 51,251.06pts while market year-to-date return extended to c.+19.98%. Buying interests on equities like AIRTELAFRI (+9.88%) and GEREGU ( +6.66%) drove bullish sentiment in the market.
The NGX Oil & Gas and Banking Indices both depreciated by c.2.86% and 0.41% respectively, the NGX Consumer Index rose by c.0.09% while the NGX Industrial Index remained at the end of the trading session. SOVRENINS led the volume chart with c.523.93 million units while PRESCO topped the value charts with c. ₦ 1.61 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦ 461.50/US$1.00 from ₦ 461.67/US $1.00, recorded the previous day.
Oil rose on Friday and was on track for a second straight annual gain in a volatile year marked by tight supplies because of the Ukraine war and weakening demand from the world’s top crude importer, China. Brent Crude Oil price rose c.1.31% day-on-day to settle at US$84.55pb, while WTI gained c.1.10% day-on-day to settle at US$79.22pb as at report time. Spot Gold lost c.0.24% day-on-day to close at US$1,821.70 per ounce as of report time.