FIXED INCOME MARKETS
The Interbank market declined significantly to c.₦370.18 billion compared to Friday’s opening balance of c.₦1.35 trillion, because of the CRR debits. Nevertheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 10.17% and 10.83% respectively from 13.00% and 14.50% recorded the previous week.
The week started on a mixed to bullish note, with demand recorded on Dec 2023 NTBs at c.7.10% levels while offers were a lot lower at c.5.60%. Few trades were also recorded on the short end of the curve, as Apr 2023 and May 2023 papers traded at c.3.00% levels. Overall, the average mid-rate closed c.3bps lower at 4.06%.
The FGN bonds market endured a bearish theme following last Friday’s CRR debits, as yields rose across the curve, especially on 2029s, 2032s, 2037s, 2042s and 2049s, though executed volumes were few and far between. Thus, average mid-yield closed 7bps higher at 13.12%.
Positive sentiments radiated the Eurobond space, as greens were recorded across the African papers, driven by China’s reopening of trade and expectations of slower rate hikes. The dollar weakened, stocks extended global gains in risk assets and oil rallied.
The Nigerian bourse started the week bullish, as the Nigerian Stock Exchange All Share Index (NGX ASI) rose by c.0.92% day-on-day to close at 51,693.08 points while market year-to-date return improved to c.0.86%. The bullish sentiment was driven by demand for stocks like AIRTELAFRI (+5.16%) and NB (+1.91).
The NGX Banking and Oil & Gas Indices both lost c.1.31% and 0.01% respectively, the NGX Consumer Goods Index gained c. 0.08% while the NGX Industrial Index closed flat at the end of the session. STERLNBANK led the the volume with c.85.18 million units while AIRTELAFRI led the value charts c.₦ 1.03 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained unchanged at ₦ 461.67/US$1.00 recorded at the close of the previous week.
Oil price extended gains, rising about 3% after China’s move to reopen its borders boosted the outlook for fuel demand and overshadowed global recession concerns. Brent Crude Oil price gained c.3.01% day-on-day to settle at US$80.94pb, while WTI gained c.3.35% day-on-day to settle at US$76.22pb as at the time of this report. Spot Gold gained c.0.60% day-on-day to close at US$1,881.00 per ounce as of report time.