FIXED INCOME MARKETS
Interbank system liquidity improved significantly to a credit balance of c.₦1.03 trillion, compared to c.₦584.67 billion recorded the previous week. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 9.50% and 9.83% respectively from 11.75% and 11.33% recorded on Friday.
It was a very slow start in the treasury bills market, albeit the underlying sentiment remained bullish, as banks scramble for outlets to deploy their excess liquidity. Most of the interests were skewed to short and mid dated papers, with the long end being offered at 7.00% levels. Overall, the average mid-rate closed c.8bps lower at 4.15%.
The FGN bonds market endured a mixed theme, with sideways interest recorded across the 2029, 2032, 2037, 2042 and 2049 maturities, though traded volumes were relatively meagre due to wide bid/ask spreads. Thus, the average mid-yield closed c.6bps higher at 13.22%.
The Eurobond space traded one-way today, amid positive opening in the equities market. Demand was witnessed across most SSA and MENA papers, with an average price appreciation of c.0.8pts. Overall, the average yield across the Nigerian sovereign curve closed at 11.21%.
The equities market started the year bullish, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.67% day-on-day to close at 51,595.66pts while market year-to-date return was also recorded at c.+0.67 %. The major drivers were BUAFOODS (+10.00%) and UBA (+9.21%).
The NGX Consumer goods and Banking Indices both gained c.3.60% and 2.60% respectively, the NGX Oil & Gas Index lost c.0.02% while the NGX Industrial Index remained at the end of the trading session. FBNH led the volume chart with c.207.62 million units while NESTLE topped the value charts with c.₦515.99 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated slightly to ₦ 461.00/US$1.00 from ₦ 461.50/US $1.00, recorded the previous week.
Oil prices edged lower on Tuesday in volatile trade as weak demand data from China and a gloomy economic outlook weighed. Brent Crude Oil price lost c.0.90% day-on-day to settle at US$85.19pb, while WTI lost c.0.97% day-on-day to settle at US$79.45pb as at report time. Spot Gold gained c.1.51% day-on-day to close at US$1,853.80 per ounce as of report time.