FIXED INCOME MARKETS
Estimated opening system liquidity was c.₦300 billion long, in the absence of official figures by the CBN. Thus, the Overnight Policy Rate (OPR) remained unchanged at 10.50% from Friday while the Overnight Rate (O/N) closed higher at 10.81% from 10.75% recorded at Friday’s session.
The pulse in the treasury bills market remained bullish to start the week, with demand witnessed across the curve despite last week’s CRR debits. Bids on 25 Jan 2024 were seen at 2.40% while offers were at c.1.80%; also, Nov and Dec 2023 papers traded at 1.40% levels. Overall, the average mid-rate closed c.8bps lower to settle at 3.30%.
The FGN bonds market witnessed a mixed to bullish theme, with sideways interest recorded on 2028s, 2037s and 2049s, while mild demand was observed on 2024s, 2025s and 2026s. Consequently, the average mid-yield closed c.5bps lower to print at 13.93%.
The Eurobond space sustained the bearish theme experienced at the close of last week’s trading session, as the SSA and MENA curves (Sovereign and Corporates) traded lower prices, bolstered by the U.S. jobs report which added weight to a possible hawkish Fed narrative. Overall, the average yield on the Nigerian curve settled at 11.66%.
The domestic bourse opened on a bullish note at the start of the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) rose by c.0.29% day-on-day to close at 54,367.74 points while year-to-date return extended to c.6.08%. Demand on trailblazers like OANDO (+3.65%) MTNN (+1.72) and WAPCO (+0.60) drove the positive trend.
The NGX Industrial and Consumer Goods Indices both appreciated in value by c. 0.03% and 0.01% respectively, while the NGX Banking and Oil and Gas Indices both lost c. 0.46% and c. 0.02%. GTCO led both the values and volume charts with c.1.27 billion and c.₦ 50.58million worth of trades, respectively.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to
N 462.17/US$1.00 from ₦ 461.50/US$1.00 recorded at the close of the previous week.
Oil prices rose on Monday from an 8% drop last week on supply concerns, but was still trading near three-week lows, driven by worries that slower growth in major economies may limit fuel use. Overall, Brent Crude Oil price gained c.1.24% day-on-day to settle at US$80.99pb, while WTI gained c.0.98% day-on-day to settle at US$74.08pb as at the time of this report. Spot Gold grew by c.0.59% day-on-day to close at US$1,887.50 per ounce as of report time.