FIXED INCOME MARKET
Money Markets

Interbank system liquidity improved significantly today (buoyed by coupon payments worth ca ₦139 billion), opening with a credit balance of ca ₦502.97 billion higher than Friday’s opening balance of ca ₦26.81 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to 4.50% and 5.00% from 5.67% and 6.17% respectively, on Friday.

Treasury Bills

The NTB market remained somewhat quiet today, despite today’s coupon inflows and FAAC inflows from late last week, with offers seen on January to March 2023 NTB papers. There were few bids on the May SPEBs at 3.30% with the offer significantly lower at 2.90%. Consequently, the average rate stayed flat, day-on-day to settle at 3.17% amid lack of trading activity.

Bonds

The FGN bonds curve also had a muted outing, with offers predominantly seen on 2026s, 2028s and 2042s, but bids were scarce, as market players traded cautiously amid uncertainty on rate direction. Thus, the average yield rose by ca 2bps across the curve, to settle at 10.69%.

Eurobonds

The SSA Sovereign Eurobonds space reflected a mixed to bullish theme, as coupon inflows (Nigeria Papers – 2028s, 2033s, and 2051s) spurred buyside activity while other market players engaged in profit-taking activities as the month draws to a close. Consequently, the average yield settled at 7.96%.

Equities

The domestic bourse began the week with bearish sentiments which dragged market performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.14% day-on-day to close at 46,898.23pts, while year-to-date returns reduced to ca +9.79%.

The NGX Consumer and Industrial indices gained ca 0.18% and 0.06%, while the NGX Banking and Oil & Gas indices lost ca 4.42% and 0.12%, day-on-day, respectively.

Transcorp Corporation of Nigeria Plc topped the volume chart with ca 92.00 million units, while Seplat Energy Plc led the value chart with ca 0.38 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.50/US$1.00 from ₦416.33/US$1.00, on Friday.

Commodities

Concerns over further lockdowns in China, the world’s largest oil importer, and the potential impact on demand sent crude oil prices tumbling, dampening market sentiments. Thus, Brent Crude Oil price lost ca 5.41% day-on-day to settle at US$114.04pb, while WTI also lost ca 6.66% day-on-day to US$107.24pb as at report time. Spot Gold lost ca 0.74% day-on-day to settle at US$1,947.30 per ounce as at report time.

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