FIXED INCOME MARKETS
Opening system liquidity recorded a positive balance of c.₦195.5 billion, compared to yesterday’s negative opening balance of c.₦ 22.1billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 11.88% and 12.56% respectively from 16.50% and 16.94% recorded the previous day.
The treasury bills market started off slightly bearish, as offers were skewed towards the mid-to-long end of the curve. Nonetheless, the market activities subsided as market players shifted attention to the NTB auction. Average yield remained unchanged at 4.20%.
At the opening bell, the bears sustained their dominance in the local bonds market, with sell interests mostly seen on the short-dated papers. However, towards the end of today’s session, activities slowed down. Nevertheless, average yield closed relatively flat to settle at 13.58%.
The bearish sentiment persisted in the Eurobonds market today, even as the market anticipates the minutes of the last FOMC meeting to unveil the intentions of the U.S Federal Reserve. At the SSA region, Ghana’s long-term foreign currency issuer default rating have been downgraded to “restricted default” from “C” by Fitch, on the back of its inability to make the coupon payment on the 2026 Eurobond maturity. Average yield closed at 12.22%.
The Nigerian domestic bourse reversed its bearish trend, as the Nigerian Stock Exchange All Share Index (NGX ASI) increased in value by c.0.23% day-on-day to close at 54,315.53 points while year-to-date return closed at c.5.98%. Buying activities on pacesetters like ZENITHBANK(+0.2%) GTCO (+0.2%) and GEREGU (+22.4) drove the bullish theme. The NGX Consumer Goods & Banking Indices all appreciated in value by c. 0.01% and c. 0.25% respectively, while the NGX Oil &Gas and Industrial Goods Indices both remained flat. ZENITHBANK led the volume charts with c. 13.00 million units, while SEPLLAT led the value charts with c. ₦ 1.09 billion worth of trades respectively.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦ 461.60/US$1.00 from ₦ 461.33/US$1.00 recorded at the close of the previous day.
Oil prices were steady on Wednesday as investors await the U.S. Federal Reserve’s comments after recent data pointed to the possibility of more interest rates hikes, which may lower economic growth and limit global fuel demand. Brent Crude Oil price declined by c.0.40% day-on-day to settle at US$82.72pb, while WTI decreased by c.1.75% day-on-day to settle at US$75.02pb as at the time of this report. Spot Gold depreciated in value by c.0.03% day-on-day to close at US$1,843.00 per ounce as of report time.