FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity opened lower at ₦463.91 billion, compared to yesterday’s opening balance of ca ₦770.54 billion, due to the settlement of yesterday’s NTB PMA sale. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to 1.17% and 1.50% from previous day’s 2.17% and 2.83% respectively.

Treasury Bills                               

The NTB secondary market traded on a bullish note, as buy-side players sought to fill lost bids at yesterday’s Primary Market Auction (PMA). The newly issued 1-year paper and 26 Jan 2023 maturity saw bids at 5.05% while offers hovered around 4.90% to 4.95%. Overall, average rate dipped by 8bps day-on-day, closing at 4.42%.

Bonds  

The FGN bonds secondary market traded with mixed sentiments, with mild buying interests seen across board on select maturities while some sell pressure was felt on the long end of the curve. The 2026s drew the most traction, trading between 11.18% to 11.22% levels. Overall, the average yield dropped ca 2bps across the curve day-on-day, to settle at 11.51%.

Eurobonds

The Nigerian Eurobonds market traded bearish today amid higher than expected US inflation numbers (Est. 7.30%, Actual 7.50%), with sell-side activity seen at the mid to long-end of the yield curve. Overall, the average yield rose by ca 5bps day-on-day to 7.24%.

Equities

The domestic bourse recorded another day of positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.27% day-on-day to settle at 47,286.34pts, while year-to-date return expanded to +10.70%. This performance was largely supported by demand on stocks such as Flour Mills of Nigeria Plc (+3.36%) and Zenith Bank Plc (+1.11%).

The NGX Oil and Gas, Consumer Goods and Banking indices was up ca 1.82%, 0.98% and 0.64% respectively, while the NGX Industrial Good index traded flat, day-on-day.

Chams Plc led the volume chart with ca 16.74 million units while Seplat Petroleum Development Company Plc topped the value chart with ca ₦713.65 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦416.67/US$1.00 from ₦416.00/US$1.00, the previous day.                                                                               

Commodities

Global crude Oil prices rose today, following the Energy Information Administration (EIA) report of a drop of 4.8 million barrels in U.S crude inventories vs market analysts’ expectation of 369,000 barrel rise.  Thus, Brent Crude oil price gained ca 1.33% day-on-day to settle at US$92.74pb, while WTI also gained by ca 1.59% to US$91.09pb as at report time. Spot Gold lost ca 0.07% day-on-day to settle at US$1,835.40 per ounce as at report time.

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