FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity decreased today, opening with a balance of ca ₦13.51 billion, lower than Friday’s opening balance of ca ₦168.46 billion. Nevertheless, the Open Buy Back (OBB) rate remained stable at 15.00%, while the Overnight (ON) rate dropped to 15.25% from 15.67%, the previous day.

Treasury Bills                                                                  

The NTB secondary market sustained its bullish theme, with demand seen on the October- November 2022 papers at 5.50% and 5.60%, as investors continue to fill unmet demand at last week’s PMA. The CBN also rolled over its maturing Special Bill for another 91 days, with offers at c.5.50% levels. Overall, average rate stayed relatively flat at 4.72%.

Bonds  

The FGN bonds secondary market was slightly bearish, with sell-side activity seen on the 2037 and 2050 maturities at 13.03% and 13.30% respectively.  Overall, average yields inched up by 4bps day-on-day to 11.41%.

Eurobonds

The Eurobonds space was fairly mixed, with demand seen at the short-end of the curve, while some selloffs were seen at the mid to long end of the curve. Overall, average yield increased by ca 1bp, day-on-day to 7.55%.

Equities

The domestic bourse opened the week with negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.09% day-on-day to close at 43,270.94pts, while year-to-date performance declined to +7.45%. This was largely due to losses in stocks such as Zenith Bank Plc (-0.62%) and Guaranty Trust Holding Company Plc (-0.20%).

The NSE Oil and Gas, Consumer Goods and Banking indices lost ca 0.56%, 0.23% and 0.18% respectively, while the NSE Industrial index traded flat, day-on-day.

First City Monument Bank Plc led the volume chart with ca 58.45 million units while Airtel Africa Plc topped the value chart with ca ₦679.79 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦415.07/US$1.00.

Commodities

Global crude oil prices recovered some of Friday’s losses, ahead of the Organization of Petroleum Exporting Countries (OPEC+) and allies’ policy meeting scheduled to hold later this week, where a decision will be made on whether to increase supply output by 400,000 barrels per day in January and beyond.  Thus, Brent Crude oil price gained ca 4.80% day-on-day to settle at US$76.21pb, while WTI also gained ca 5.28% to US$71.75pb, as at report time. Spot Gold gained ca 0.43% day-on-day to settle at US$1,795.80 per ounce as at report time.

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