FIXED INCOME MARKETS
Estimated opening system liquidity was c.₦800 billion long, in the absence of official figures by the CBN. However, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) closed higher at 10.88% and 11.06% respectively from 10.50% and 10.75% recorded at yesterday’s session, due to the latest round of CRR debits.
The Treasury bills market closed the week on a bullish note, with buyside interests recorded across the curve, especially on 8-Jun-2023, 7-Dec-2023 and 11 Jan-2024 papers at 1.10%, 1.70% and 2.20% levels, respectively. Thus, the average mid rate closed c.10bps lower to settle at 3.38%.
The FGN bonds market was relatively muted, with sideways interest observed across 2026s, 2028s and 2037s. Overall, the average mid-yield declined by c.2bps to 13.97%.
The Eurobond space traded bearish, with selloffs recorded across the SSA markets, as the spillover effect of lower equities trading driven by disappointing earnings from top US tech companies, dampened the rally fuelled by investors’ optimism that rates were close to peaking. Overall, the average yield on the Nigerian curve settled at 11.49%.
In other news, US Non-Farm Payrolls printed at 571,000 (Est. 188,000) and Unemployment rate declined to 3.40%.
The Nigerian equities market sustained its bullish sentiments to close the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) rose by c.0.40% day-on-day to close at 54,213.09 points while market year-to-date return closed higher at c.5.78%. Demand on bellwethers like TRANSCORP (+4.80%) MTNN (+1.88) and ACCESSCORP (+1.66%) drove the positive trend.
The NGX Banking, Oil & Gas and Industrial Indices all appreciated in value by c. 1.06%, 0.17% and 0.04% respectively, while the NGX Consumer Goods Index lost c. 0.39%. UNIVINSURE led the volume chart with c.63.36 million while GTCO topped the values charts and c.₦ 522.21 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to
N 461.50/US$1.00 from ₦ 462.00/US$1.00 recorded the previous day.
Oil prices eased today, with major benchmarks headed for their second straight week of losses, as the market awaited further signs of fuel demand recovery in China to offset looming slumps in other major economies. Overall, Brent Crude Oil price gained c.0.50% day-on-day to settle at US$82.58.pb, while WTI gained c.0.76% day-on-day to settle at US$76.41b as at the time of this report. Spot Gold declined by c.1.71% day-on-day to close at US$1,899.30 per ounce as of report time.