FIXED INCOME MARKETS
Opening system liquidity increased to c.₦156.6 billion compared to yesterday’s opening balance of c.₦88.6 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) increased to 17.13% and 17.81% respectively from 15.38% and 16.25% recorded the previous day.
As system liquidity remained frail, the treasury bills market sustained its bearish trajectory in today’s session. Moreso, sell interest were seen on the mid-to-long end of the curve, particularly 8 Feb Bill. Nonetheless, the market activities slipped to a quiet note, as average yield closed at 4.33%.
The bearish sentiment persisted in Nigeria’s market today, particularly on short-end papers, like the 2025, 2028, 2037, and 2049 maturities. Although, the market toned quiet, as buy interest remained weak. To contextualize, average yield closed flat at 13.49%.
Today’s session was dominated by selloffs across the SSA curves, including Egypt, as risk-off sentiments continue to trigger upward swings in yields, on the back of a hotter-than-expected U.S PPI data. Overall, average yield expanded by 14bps to 11.73%.
The Nigerian domestic bourse closed on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) depreciated by c.1.31% day-on-day to close at 53,804.46 points while year-to-date return closed at c.4.98%. Selling activities on pacesetters like GTCO (-0.05%) ZENITHBANK (-0.50%) and ACCESSCORP (-0.05) drove the bearish theme. The NGX Consumer Goods Index appreciated in value by c. 0.13%, the NGX Banking, and Industrial Good Indices both depreciated in value by c. 1.27% and c. 0.05% respectively while the NGX Oil &Gas Index closed flat. GEREGU led the value charts with c. 762.07 million units and FBNH led the volume charts with c. ₦47.42 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦461.25/US$1.00 from ₦ 462.00/US$1.00 recorded at the close of the previous day.
Oil prices slid on Friday and were on track for weekly losses as strong U.S. economic data heightened concern that the Federal Reserve will continue tight monetary policy to tackle inflation, which could hit fuel demand even as crude stockpiles grow. Brent Crude Oil price declined by c.1.37% day-on-day to settle at US$83.97pb, while WTI also decreased by c.1.52% day-on-day to settle at US$77.30pb as at the time of this report. Spot Gold depreciated by c.1.09% day-on-day to close at US$1,831.60 per ounce as of report time.