FIXED INCOME MARKET
Money Markets

Interbank system liquidity improved today, to open with a credit balance of ca ₦271.40 billion compared to yesterday’s balance of ca ₦251.64 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 4.50% and 5.00% from 5.75% and 6.38%, respectively.

Treasury Bills

Following yesterday’s unexpected NTB auction outcome, in which the 1-year paper closed 9bps lower, as opposed to market expectation of an increase in rate, the NTB market traded bullish today, with most interest skewed to the newly released 1-year NTB paper. Bids ranged from 4.50% to 4.60% but offers were scarce. Overall, the average rate dipped by ca 6bps, day-on-day to settle at 3.66%.

Bonds

The FGN bonds market traded mildly bullish as well, with demand seen on 2026s, 2027s, 2029s, 2032s, 2049s, and 2050s, although trades executed were few and far between due to wide bid/ask spreads. Overall, the average rate dipped by 4bps, day-on-day to settle at 11.57%.

Eurobonds

In the SSA Eurobond markets, liquidity appears to be thinning in Ghana’s front-end (2025s, 2026s, Mar & Feb 2027s), implying a modest reversal in the recent bearish trend. However, there was significant selling pressure on mid to long end Nigeria (2033s, 2038s, 2047s, 2051s), as investors continue to trade sentiments around JPMorgan’s delisting action, while Angola was quiet. Overall, the average yield settled at 11.83%.

In other news, S&P Global affirmed Egypt at ‘B’ with the stable outlook.

Equities

The domestic bourse closed the day in positive territory, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.15% day-on-day to close at 52,917.76pts, while market year-to-date returns extended to 23.88%. This was supported by gains in stocks such as Lafarge Africa Plc (+9.86%), Presco Plc (+8.11%), Okomu Oil Palm Plc (+4.52%), and Access Holdings Plc (+0.52%), respectively.

The NGX Banking index lost ca 0.86% while the NGX Consumer Goods, Industrial, and Oil & Gas indices gained ca 1.37%, 0.71%, and 0.46% day-on-day, respectively.

Transnational Corporation Plc led the volume chart with ca 94.40 million units while Lafarge Africa Plc topped the value charts with ca ₦601.95 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦420.00/US$1.00 from ₦418.75/US$1.00, the previous day.

Commodities

Global crude oil prices witnessed a steady rebound, even as recession fears plagued financial markets as supply concerns arising from Russia’s invasion of Ukraine bolstered the market. Brent Crude Oil price rose ca 0.90% day-on-day to settle at US$108.43pb, while WTI also gained ca 1.34% day-on-day to settle at US$107.13pb as at report time. Spot Gold dipped ca 0.83% day-on-day to close at US$1,838.00 per ounce as at report time.

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