FIXED INCOME MARKETS
System liquidity improved significantly to c.₦ 1.02 trillion long, compared to c.₦ 581.26 billion recorded yesterday. Nevertheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) both remained unchanged at 10.50% and 11.00% recorded yesterday.
The Treasury bills market observed some demand across the curve, as banks sought to invest their idle cash. The Mar 2023 and Jan 2024 Bills were offered at 0.30% and 2.80% levels respectively, while bids were c.35bps higher. Thus, the average mid-rate closed c.8bps lower at 3.65%.
The FGN bonds market traded bearish earlier in the day amid yesterday’s oversupply at the auction. Offers across the on-the-run papers (2028s,2032s,2037s and 2049s) nudged up c.15bps on average, as bids were very minimal but the frenzy cooled off later with bids resurfacing and a handful of trades executed. Overall, the average mid-yield increased by c.20bps to 14.03%.
The Eurobond space traded weaker today, with Nigeria, Egypt, Ghana and Angola papers recording lower prices. The former led the bearish theme, following the recent downgrade by Moody. On a broader scope, equities have also dipped in recent days as markets await key central bank meetings this week and Powell’s post FOMC meeting comments for guidance on the future path of hikes. Overall, the average yield on the Nigerian curve settled at 10.53%.
The Nigerian equities market sustained bullish sentiments, with the Nigerian Stock Exchange All Share Index (NGX ASI) appreciating by c.0.15% day-on-day to close at 53,238.67 points while market year-to-date return extended to c.3.88%. Demand across bellwethers such as TRANSCORP (+2.50%), ACCESSCORP (+0.55%) and WAPCO (+0.40%) drove the positifve sentiment.
The NGX Banking and Consumer Goods Indices both lost c. 0.03% and 0.17% respectively, the NGX Industrial Index gained c. 0.03% while the NGX Oil & Gas Index remained unchanged from the previous day. UNIVINSURE led the volume chart with c.48.55 million while AIRTELAFRI led the values charts and c.₦ 3.31 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained unchanged at ₦ 461.50/US$1.00 recorded the previous day.
Oil prices fell by more than 1% today, touching two-week lows on the prospect of further interest rate increases, a stronger U.S. dollar and ample Russian crude flows. Brent Crude Oil price lost c.0.81% day-on-day to settle at US$84.21pb, while WTI lost c.0.04% day-on-day to settle at US$77.93b as at the time of this report. Spot Gold also lost c.0.07% day-on-day to close at US$1,924.50 per ounce as of report time.