FIXED INCOME MARKET
System liquidity declined slightly to a credit balance of c.₦433.32 billion compared to yesterday’s opening balance of c.₦500.39 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) closed higher at 9.67% and 10.00% respectively from 9.50% and 9.83% recorded the previous day.
The NTB market ended the week with sustained demand recorded on 11-Jan-2024 maturity at 6.00% levels, albeit offers were pegged at c.5.65% levels. Thus, the average mid-yield closed c.3bps lower to settle at 3.95%.
The FGN bonds market observed a relatively muted session, amid weak interests from buyside players. However, 2037s witnessed some demand 14.90% levels, with offers declining to c.14.75%, as some players continue to take position ahead of the release of Q1’2023 FGN bond issuance calendar. Overall, the average mid-yield remained unchanged at 13.36%.
Yesterday’s expected decline in US inflation numbers drove further demand in the Eurobond space, as ample interest was recorded across notable African papers, causing prices to appreciate on average c.1.85pts with Egypt leading the pack. Overall, the average yield across the Nigerian sovereign curve closed at 9.90%.
The Nigerian bourse sustained its positive trend across sectors, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained by c.2.07% day-on-day to close at 52,512.48 points while market year-to-date return expanded to c.2.46%. Buying activities on bellwether stocks like MTNN (+4.50%), FLOURMILL (+ 3.45%) and TRANSCORP (+2.52) drove the positive return.
The NGX Banking, Oil & Gas, Consumer goods and Industrial Indices all gained c.4.78%, 3.19%, 0.71% and 0.71% respectively at the close of the session. ZENITHBANK led both the volume and value charts with c.20.31 million units and c.₦ 517.74 million worth of trades, respectively.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦ 461.90/US$1.00 from ₦ 461.17/US$1.00 recorded at the close of the previous day.
Oil prices rose Friday and were on track for strong weekly gains on solid signs of demand growth in top crude-oil importer China and expectations of less aggressive interest rate rises in the United States. Brent Crude Oil price gained c.1.17% day-on-day to settle at US$85.02pb, while WTI gained c.1.39% day-on-day to settle at US$79.53pb as at the time of this report. Spot Gold gained c.0.86% day-on-day to close at US$1,915.90 per ounce as of report time.