FIXED INCOME MARKET
Money Markets

Interbank system liquidity tapered today, opening with a balance of ₦165.47 billion, significantly lower than Friday’s opening balance of ca ₦520.10 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 5.83% and 6.33% from 4.75% and 4.93% respectively, on Friday.

Treasury Bills

The NTB market started the week on a fairly quiet note, with pockets of trades executed on CBN Special bills and Jan’23 papers. Thus, the average rate stayed relatively flat, day-on-day to settle at 3.68%.

Bonds

The FGN bonds market also endured a calm theme, with buy interest observed on the 2026s, 2032s, and 2050s at 10.60%, 12.45%, and 12.92%, respectively. Consequently, the average rate dipped by 5bps, day-on-day to settle at 11.62%.

Eurobonds

The Eurobond market remains risk averse amid concerns about high inflation, central bank tightening and economic slowdown. The losses have continued into this week, with the SSA opening lower this morning and Kenya taking the largest hit even as it prepares to issue additional debt. The Nigeria, Ghana, Angola and Egypt papers, all traded 2.5 to 3.3 percentage points lower on average. Overall, the average yield settled at 11.66%.

Equities

The domestic bourse sustained positive sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.90% day-on-day to close at 51,903.44pts, while year-to-date returns remain elevated at +21.51%. This performance leaned heavily to continued interest and optimistic sentiments in stocks like Nigerian Breweries Plc (+10.00%), MTN Nigeria Communications Plc (+9.45%), and Guaranty Trust Holding Company Plc (+1.50%), respectively.

The NGX Banking Index lost ca 0.28% while the NGX Consumer Goods, Oil & Gas, and Industrial Goods indices gained ca 2.15%, 0.47%, and 0.21% day-on-day, respectively.

Transcorp Corporation of Nigeria Plc led the volume chart with ca 37.76 million units while Seplat Energy Plc topped the value charts with ca ₦842.52 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦419.00/US$1.00 from ₦417.00/US$1.00, on Friday.

Commodities

Global oil prices dipped along with other risk assets on concerns over interest rate hikes and a possible recession, as tighter and wider Covid-19 lockdowns in China slowed export growth. Brent Crude Oil price dipped ca 4.80% day-on-day to settle at US$107.00pb, while WTI also lost ca 5.13% day-on-day to settle at US$104.14pb as at report time. Spot Gold dipped ca 1.15% day-on-day to close at US$1,861.20 per ounce as at report time.

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