FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity declined today, opening with a balance of ₦140.96 billion, lower than previous day’s opening balance of ca ₦157.23 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 8.00% and 8.50% from 5.67% and 6.33% recorded the previous day.

Treasury Bills                                                                   

Bearish sentiments persisted in the NTB secondary market amid improved offers, however, number of deals consummated remained low as buyside players were scarce.  Thus, average rate remained unchanged day-on-day at 3.23%.

Bonds

Similarly, the FGN bonds secondary market was dominated by bearish sentiment, the 2028 and 2042 maturities saw offers touch 10.75% and 12.90% respectively, but bids were around 10.95% and 13.06%. Thus, average yield moved up by 12bps to close the day.

Eurobonds

The Eurobond market remained bearish, with better offers seen across the curve, as players continue to trade sentiment around the Fed governor’s comments of speeding up plans to shrink its massive balance sheet size and hiking rates in other to combat rising inflationary pressures.

Equities

The domestic equities market closed the day in the red, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.02% day-on-day to close at 46,766.16pts, while year-to-date returns dropped to ca +9.48%. This was largely due to sell-side activity on stocks like Guaranty Trust Holding Company Plc (-1.12%), Nigerian Breweries Plc (-1.11%) and Zenith Bank Plc (-0.44%).

The NGX Oil & Gas and Banking indices gained ca 0.20% and 0.15% respectively, the NGX Consumer Goods index lost ca 0.22%, while the NGX Industrial Goods index was unchanged day-on-day.

Fidelity Bank Plc led the volume chart with ca 81.75 million units while MTN Communications Plc topped the value charts with ca ₦380.26 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.50/US$1.00, from ₦416.83/US$1.00 the previous day.

Commodities

Global crude oil prices trended southward today, as the International Energy Administration (IEA) reported a rise in U.s crude inventories by 2.4 million barrels against market analysts’ expectation of a drawdown.  The drop in crude oil prices was also supported by reports that large consuming nations would also release oil from reserves in conjunction with the United States to counter supply worries. Thus, Brent Crude Oil price lost ca 2.47% day-on-day to settle at US$104.07pb, while WTI also lost ca 2.72% day-on-day to US$99.24pb as at report time. Spot Gold gained ca 0.16% day-on-day to settle at US$1,930.50 per ounce as at report time.

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