FIXED INCOME MARKET
Money Markets
Interbank system liquidity opened with a balance of ca ₦55.28 billion amid the FGN bond auction settlement, compared to yesterday’s opening balance of ca ₦151.13 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rate closed higher at 16.50% and 16.83% respectively from 14.38% and 15.25%, recorded the previous day.
Treasury Bills
The treasury bills market was relatively quiet as attention was largely on today’s NTB auction, where c.N13bn was offered across the usual tenors. Overall, the average mid-rate remained relatively unchanged.
Bonds
It was another bullish theme in the FGN bonds market, with heavy demand recorded across 2024s, 2026s, 2027s, 2032s and 2037s, due to short covering and position-taking ahead of an expected bull run in the early periods on next year. Thus, the average mid yield closed ca 33bps, day-on-day to settle at 13.54%.
Eurobonds
The Eurobond market endured a mixed theme albeit with a bullish undertone, as investors stayed on the sidelines ahead of the Fed’s interest rate decision later tonight though subtle demand was still evident across notable SSA and MENA curves. Overall, the average yield across the Nigerian sovereign curve closed at 10.97%.
Equities
The domestic bourse reversed some of the previous day’s losses, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.28% day-on-day, to close at 48,988.04pts, while the market’s year-to-date returns extended to ca 14.68%. This performance leaned heavily to buy interests in stocks BUA Cement Plc (+2.89) and United Capital Plc (+1.48%), respectively.
The NGX Industrial Index gained ca 1.46% while the NGX Consumers Goods, Oil & Gas, and Banking Indices lost 0.44%, 0.15%, and 0.07% day-on-day, respectively.
Guaranty Trust Holding Company Plc led the volume chart with ca 10.21 million units, while Nestle Nigeria Plc topped the value charts with ca ₦240.79 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to settle at ₦450.58/US$1.00 from ₦446.38/US$1.00, recorded the previous day.
Commodities
Global oil prices rose today as OPEC and the International Energy Agency (IEA) both anticipated a rebound in demand over the next year and as U.S. rate hikes are likely to taper in tandem with slowing inflation. Brent Crude Oil price gained ca 1.55% day-on-day to settle at US$81.93pb, while WTI rose ca 1.71% day-on-day to settle at US$76.67pb as at report time. Spot Gold lost ca 0.20% day-on-day to close at US$1,822.10 per ounce as of report time.
