FIXED INCOME MARKETS
The Interbank market remained buoyant, as system liquidity improved further to c.₦1.40 trillion, compared to c.₦ 1.03 trillion recorded the previous day. Nevertheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) remained unchanged at 9.50% and 9.83% respectively recorded the previous day.
Activity in the treasury bills market was bullish, with reduced offers witnessed across the curve. The Sept 2023 and Oct 2023 Bills traded at c.4.50% levels, while the longer dated papers traded at sub 7.30% levels. Overall, the average mid-rate traded c.10bps lower at 4.05% at the close of the trading session.
The FGN bonds market recorded a mixed to bullish bias, as demand was observed across the short-dated papers, 2032s and 2037s. Thus, the average mid-yield declined by c.5bps to close at 13.17%.
The Eurobond space endured a bullish theme, with more buyside interest recorded across the African markets. The Nigerian, Angolan and Egypt papers witnessed some demand across the curves, while Ghana observed more offers. Overall, the average yield across the Nigerian sovereign curve closed at 11.02%.
The Nigerian bourse closed todays’ session on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.12% day-on-day to close at 51,657.56pts while market year-to-date return extended to c.+0.79 %. The bullish sentiment was supported by sustained buying interest in bellwether stocks like NB (+10.00%), FLOURMILL (+5.63%) and BUAFOODS (+2.10%).
The NGX Banking and Consumer goods Indices both gained c.0.51% and 2.09% respectively, the NGX Industrial Index lost c.0.77% while the NGX Oil & Gas Index remained at the end of the trading session. BUACEMENT led the both the volume and value charts with c.101.65 million units and c.₦ 9.85 billion worth of trades respectively.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦ 461.67/US$1.00 from ₦ 461.00/US $1.00, recorded the previous day.
Oil fell sharply today after slumping in the previous session, weighed down by concerns about weak demand due to the state of the global economy and China’s rising COVID cases. Brent Crude Oil price lost c.3.65% day-on-day to settle at US$79.10pb, while WTI lost c.3.80% day-on-day to settle at US$74.01pb as at report time. Spot Gold gained c.0.97% day-on-day to close at US$1,864.00 per ounce as of report time.