FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity decreased further today, opening with a deficit balance of ca ₦91.55 billion, lower than previous day’s opening balance of ca ₦13.51 billion, despite inflows of ca ₦54.30 billion from Open Market Operations (OMO) maturities. As a result, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to 17.25% and 17.75% from 15.00% and 15.25% respectively.

Treasury Bills    

The NTB secondary market sustained its bullish theme, with mild demand seen on the August 2022 to November 2022 papers around 5.45% and 5.50%. However, short dated papers including CBN’s Special Bill were offered at 5.60% levels. Overall, average rate remained relatively flat at 4.67%.

Bonds  

The FGN bonds secondary market was bearish, with improved offers seen on 2037 and 2050 maturities at 13.05% and 13.35% respectively, as players continue to book year-end profits. Thus, average yield inched up by 5bps day-on-day to 11.41%.

Eurobonds

The Eurobonds space was bearish today, with selloffs seen across the curve. Overall, average yield increased by ca 11bps, day-on-day to 7.66%.

Equities

The domestic bourse closed the month with negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.05% day-on-day to close at 43,248.05pts, while year-to-date performance declined to +7.39%. This was largely due to losses in stocks such as Guaranty Trust Holding Company Plc (-1.40%) and Zenith Bank Plc (-1.03%).

The NSE Oil and Gas, Consumer Goods and Industrial indices lost ca 0.40%, 0.21% and 0.04% respectively, while the NSE Banking index gained 0.26%, day-on-day.

Access Bank Plc led the volume chart with ca 42.18 million units while Zenith Bank Plc topped the value chart with ca ₦935.40 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 declined today, as investors weigh the efficiency of the Moderna vaccine against Omicron, the new strain of the Coronavirus. Thus, Brent Crude oil price lost ca 3.55% day-on-day to settle at US$70.83pb, while WTI also lost ca 3.96% to US$67.14pb, as at report time. Spot Gold gained ca 0.69% day-on-day to settle at US$1,797.60 per ounce as at report time.

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