FIXED INCOME MARKETS
System liquidity improved to a credit balance of c.₦ 500.39 billion compared to yesterday’s opening balance of c.₦ 449.24 billion. Overall, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) remained unchanged at 9.50% and 9.83% respectively from the previous day.
The NTB market endured a bullish theme on the long end of the curve, as the recently issued 1-year paper traded c.130bps lower than where it closed at the NTB auction (7.30%) due to investors scrambling for offers to fill their lost bids. Surrounding tenors also declined to c.5.50% levels as market players sought alternative tenors. Overall, the average mid rate closed c.10bps lower to 3.92%.
The FGN bonds market endured a quiet theme, albeit few selling interests were recorded on 2024s, 2026s, 2037s. Thus, the average mid-yield closed c.4bps higher at 13.36%.
The Eurobond market witnessed a bullish session building up to the release of US’ December 2022 inflation numbers. It was a sea of green across the sovereigns and corporates of most African papers. As expected, the US inflation slowed to 6.50% and Core inflation also went up by 5.70%, further driving the bullish momentum. Overall, the average yield across the Nigerian sovereign curve closed at 10.20%.
The Nigerian bourse was bullish across sectors, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.62% day-on-day to close at 52,048.85 points while market year-to-date return expanded to c.1.56%. Buying interets on bellwether stocks like FBNH (+2.22%), GTCO(+ 2.08%) and ACCESSCORP (+1.64) drove the positive return.
The NGX Banking, Oil & Gas, Consumer Goods and Industrial Indices all gained c.2.15%, 0.54%, 0.09% and 0.18% respectively at the close of the session. MANSARD led the the volume with c.26.25 million units while AIRTELAFRI led the value charts c.₦ 4.14 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated slightly to ₦ 461.17/US$1.00 from ₦ 461.90/US$1.00 recorded at the close of the previous day.
Oil rose over 1% today, extending gains after figures showed U.S consumer prices unexpectedly fell in Dec’2022, and supported by optimism over China’s demand outlook. Brent Crude Oil price gained c.1.40% day-on-day to settle at US$83.83pb, while WTI gained c.1.20% day-on-day to settle at US$78.37pb as at the time of this report. Spot Gold gained c.0.64% day-on-day to close at US$1,891.00 per ounce as of report time.