FIXED INCOME MARKETS
Money Markets
System liquidity opened the week lower at c.₦ 258.06 billion compared to the previous week’s opening balance of c.₦ 433.32 billion. Nevertheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) remained unchanged at 9.67% and 10.00% respectively from the previous week.
Treasury Bills
The NTB market endured a quiet session, though few bids were recorded on 11 Jan 2024 Bill at c.5.95% levels but offers were much lower at c.5.40% levels. Overall, the average mid-rate was relatively unchanged due to low traded volumes, closing at 3.95% at the end of today’s session.
Bonds
The FGN bonds market observed a muted session as well, albeit the undertone was bearish. Few demands for 2024s were seen at c.10.60% levels while sellers showed better offers across other tenors, especially 2029s, 2049s and 2050s. Traded volumes remained weak as most players remained standoffish in anticipation of the release of Q1’2023 FGN bond issuance calendar. Thus, the average mid-yield closed 23bps higher at 13.59%.
Eurobonds
The Eurobond market witnessed a relatively muted tone due to the US labour holiday (Martin Luther King Jr. Day). Flows across the SSA and MENA markets were very thin, thus no major market moves, albeit the undertone remains bullish. The week is loaded with Fed speakers, so we expect a cautious approach from investors. Overall, the average yield across the Nigerian sovereign curve closed at 9.99%.
In other news, Nigeria’s Dec’22 inflation slowed to 21.34% (Est 21.80%), the first decline in 11 months and Ghana extended its local debt exchange for the 3rd time to Jan 31, 2023.
Equities
The domestic bourse reversed its bullish sentiments at the start of the week. The Nigerian Stock Exchange All Share Index (NGX ASI) lost c.0.31% day-on-day to close at 52,348.82 points while market year-to-date return was recorded at c.2.14%. Selling activities on stocks like GTCO (-1.63%) and ACCESSCORP (-3.76%) drove the index south.
The NGX Banking, Consumer goods and Industrial Indices all lost c.3.39%, 0.08% and 0.08% respectively at the close of the session while the NGX Oil & Gas Index gained c.0,09%. UBA led the volume with c.22.93 million units while GTCO led the value charts with c.₦ 482.50 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦ 461.50/US$1.00 from ₦ 461.90/US$1.00 recorded at the close of the previous day.
Commodities
Oil prices dipped in early Asian trade today but held close to the highest levels since the start of the year on optimism that China’s reopening will lift fuel demand at the world’s top crude importer. Brent Crude Oil price gained c.1.00% day-on-day to settle at US$84.44pb, while WTI gained c.1.03% day-on-day to settle at US$79.04pb as at the time of this report. Spot Gold lost c.0.17% day-on-day to close at US$1,918.40 per ounce as of report time.
