FIXED INCOME MARKETS
Opening system liquidity increased today to c.₦ 650.3 billion compared to yesterday’s c.₦ 472.3 billion. Nonetheless, the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) remained unchanged at 10.50% and at 10.81% respectively.
The NTB market endured a muted theme, as focus was largely on the NTB auction, albeit few demand were witnessed on the long end amid ample system liquidity. Overall, the average mid-rate stayed relatively unchanged.
Activity in the local bonds market was mixed to bearish at the early hours of trading, with sideways interests witnessed across 2026, 2028, 2037 and 2049 maturities. By close of market however, significant buy interest filtered through with specific demand for short end papers (2024s to 2028s) and 2037s and 2049s.
The Eurobonds market witnessed a relief in today’s session as buy interest was recorded across the major curves albeit less aggressive, after the sustained bear rally that rattled across the SSA curves over the past three trading sessions. However, sell interest persisted on Egypt following the latest downgrade by Moody, as well as other economies in the MENA region.
The Nigerian domestic bourse closed on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) increased by c.0.23% day-on-day to close at 54,427.05points while year-to-date return closed higher at c.6.20%. Buying activities on trailblazers like DANGCEM (-+1.89%) ZENITHBANK (+0.80) and STERLINBANK (+0.66) drove the positive trend.
The NGX Industrial and Banking indices both appreciated in value by c. 0.94% and 0.39% while the NGX Consumer Goods index depreciated in value by c. 0.14. The NGX Oil and Gas Index remained flat. GTCO led the values charts with c. 427.73 million and UNIVINSURE led the volume charts with c.₦20.03 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦461.17/US$1.00 from ₦ 461.50/US$1.00 recorded at the close of the previous day.
Oil prices rose early on Wednesday, extending gains from the previous two days, as the dollar fell after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than markets had expected and as U.S. crude stocks surprisingly fell. Brent Crude Oil price gained c.0.47% day-on-day to settle at US$84.08pb, while WTI gained c.0.91% day-on-day to settle at US$77.84pb as at the time of this report. Spot Gold grew by c.0.54% day-on-day to close at US$1,894.90 per ounce as of report time.