FIXED INCOME MARKETS
The Interbank market remained buoyant, albeit opening system liquidity declined slightly to c.₦1.35 trillion, compared to yesterday’s balance of c.₦ 1.41 trillion. Overall, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) closed higher at 13.00% and 14.50% respectively from 9.50% and 9.83% recorded the previous day, due to CRR debits.
The treasury bills market endured a mixed to bearish theme today, following the latest round of CRR debits across deposit money banks (DMBs). Offers improved across the curve, with the long end bills trending back up to c.6.00%. Overall, the average mid rate closed c.8bps higher at 4.09%.
The FGN bonds market also traded mixed sentiments, with slight buyside interest recorded across 2028s and 2029s, while improved offers were observed across 2025s, 2026s, 2037s, 2042s and 2050s. Thus, the average mid-yield closed c.3bps higher at 13.05%.
The Eurobond space witnessed sideways interests across the African markets to end the week, with Ghana, Angola and Egypt papers trading on average c.0.875pts lower, while the Nigerian curve observed mixed signals. Overall, the average yield across the Nigerian sovereign curve closed at 11.19%.
In other news, the Non-farm payrolls printed higher than expected (223k vs Est. 203k), while the Unemployment rate closed at 3.50%.
The Nigerian bourse observed a bullish theme, as the Nigerian Stock Exchange All Share Index (NGX ASI) rose by c.0.70% day-on-day to close at 51,222.94 points while market year-to-date return declined to c.-0.05%. The bullish sentiment was driven by demand for stocks like AIRTELAFRI (+3.33%) and ACCESSCORP (+2.27).
The NGX Banking, and Industrial Indices both gained c.0.23% and 0.19% respectively while the NGX Insurance and Oi & Gas Indices closed flat at the end of the session. FBNH led the the volume with c.41.90 million units while BUACEMENT led the value charts c.₦ 2.90 billion worth of trades
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦ 461.67/US$1.00 from ₦ 461.50/US $1.00, recorded the previous day.
Oil prices rebalanced after the early rally witnessed today, as a stronger dollar and weaker economic outlook weighed on market sentiments, while hopes of a Chinese demand boost limited losses. Brent Crude Oil price gained c.0.83% day-on-day to settle at US$79.32pb, while WTI gained c.0.72% day-on-day to settle at US$74.20pb as at report time. Spot Gold gained c.0.43% day-on-day to close at US$1,848.50 per ounce as of report time.