FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ca ₦351.27 billion, higher than Friday’s balance of ca ₦299.98 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 7.83% and 8.25% from 8.67% and 9.17%, respectively.
The NTB market witnessed subdued activity at today’s session, with mild demand seen on October CBN special bills and January NTBs. Thus, the average rate stayed relatively flat, day-on-day to settle at 3.55%.
Today’s FGN bond auction prompted a quiet session in the secondary market, as investors anticipated the outcome of the result. However, there was modest interest for 2026s, 2035s, 2036s, and Sukuk 31s, but offers were scarce. Overall, the average rate stayed stable, day-on-day to settle at 11.55%.
China’s weak industrial output figures spurred yet another wave of bearishness in the EMs and SSA Eurobond markets, with sell-off witnessed across the Nigeria curve and Ghana front-end papers. Overall, the average yield settled at 11.85%.
The domestic bourse reversed its positive trend, with profit-taking activities observed across board. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.29% day-on-day to settle at 52,944.65pts, while year-to-date return trimmed to +23.94%. Sell action was seen on bellwethers like Lafarge Africa Plc (-8.28%), Zenith Bank Plc (-0.61%), and MTN Nigeria Communications Plc (-0.61%), respectively.
The NGX Oil & Gas gained ca 0.60% while the Industrial, Consumer Goods, and Banking and Banking indices lost ca 0.64%, 0.62% and 0.24% day-on-day, respectively.
Transnational Corporation Plc led the volume chart with ca 88.59 million units while Seplat Energy Plc topped the value charts with ca ₦1.41 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦421.50/US$1.00 from ₦419.00/US$1.00, on Friday.
Global oil prices rose further as investor’s concerns of a global recession driven by China’s lockdowns and weak economic data were countered by indications that the European Union was moving closer to imposing a ban on Russian crude imports. Brent Crude Oil price rose ca 0.84% day-on-day to settle at US$112.49pb, while WTI also gained ca 1.45% day-on-day to settle at US$112.10pb as at report time. Spot Gold gained ca 0.19% day-on-day to close at US$1,811.70 per ounce as at report time.