FIXED INCOME MARKET

Money Markets

System liquidity improved today, opening with a balance of ca ₦432.62 billion, higher than previous day’s opening of ca ₦237.91 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 4.50% and 5.00% from 6.00% and 6.50% respectively, the previous day.

Treasury Bills

The NTB secondary market saw another subdued trading session today, with offers seen on the July and August 2022 papers between 6.55% and 6.60% levels, respectively. Thus, average rate remained stable day-on-day. The OMO secondary market was also very quiet, with little to no activity seen across the curve. Thus, average rate remained flat, day-on-day.

Bonds

The FGN bonds secondary market opened the month on a bullish note, as investors cherry-picked attractive yields across the 2035, 2036, 2049 and 2050 maturities at 12.35%, 12.40%, 12.42% and 12.75% levels respectively. Nonetheless, average yield was unchanged day-on-day.

Eurobonds

Bullish sentiment dominated the Eurobonds space today, with buy-side activity witnessed across the curve. Thus, average yield fell by ca 4bps, day-on-day.

Equities

Performance in the domestic Equities Market continued to trend south, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.09% day-on-day, to close at 39,184.22pts, while market year-to-date loss expanded to -2.70%. This was largely due to losses in Nigerian Breweries Plc (-2.93%).

The NSE Consumer goods, Banking and Oil and Gas indices lost ca 0.62%, 0.23% and 0.08% respectively, while the NSE Industrial goods index remained flat day-on-day.

Transnational Corporation of Nigeria Plc led the volume chart with ca 28.54 million units, while Zenith Bank Plc led the value chart with ca ₦398.20 million worth of trades.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦528.00/$1.00, ₦717.00/₤1.00 and ₦616.00/€1.00 from ₦526.00/$1.00, ₦715.00/₤1.00 and ₦612.00/€1.00, respectively, yesterday. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.50/$1.00 from ₦411.08/$1.00.

Commodities

Global crude oil prices declined today, ahead of the Organization of Petroleum Exporting Countries (OPEC) meeting in which an announcement is to be made on the expected 0.4million barrels per day increase in production volumes. Hence, Brent Crude oil price lost ca 1.35% day-on-day to settle at $70.64pb, while WTI also declined by ca 1.55% to $67.43pb, as at report time. Spot Gold lost ca 0.28% day-on-day to $1,813.20 per ounce as at report time.

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