FIXED INCOME MARKET
Money Markets

The interbank system liquidity opened significantly lower at ₦31.82 billion (despite the OMO maturity of ca. ₦33.63 billion), compared to yesterday’s opening balance of ca ₦351.27 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 11.25% and 11.50% from 7.83% and 8.25%, respectively.

Treasury Bills

The NTB market traded on a relatively quiet note, albeit with offers seen on January, February, and May 2023 papers. The Nov’22 and Dec’22 NTBs also witnessed some demand, but the bid-offer range remained wide. Overall, the average rate inched up ca 2bps, day-on-day to settle at 3.55%.

Bonds

Following yesterday’s FGN bond auction, the market opened slightly mixed today, with little interest in the auctioned bonds alongside the 23s, 26s, and 29s. Most bids were c.5bps higher than the marginal rates but offers were quite spread out. Overall, it was a calm session, as yield levels held steady, except for the 23s, which dipped c.8bps to close at 5.10%.

Eurobonds

The Eurobond space endured a mixed theme, as investors took varying stances in today’s session. Mild buyside activity was seen on some papers in the Nigeria and Ghana sovereign curves, which we believe to be specific client demands, while some sell-off was seen in the Nigerian corporates with BOI’s FEB 2027 paper losing the most points. Overall, the average yield settled at 11.89%.

Equities

The domestic bourse sustained bearish sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.35% day-on-day to close at 52,756.62pts, while year-to-date returns further reduced to +23.50%. This performance leaned to continued profit-taking activities in Bellwethers like MTN Nigeria Communications Plc (-1.73%), Zenith Bank Plc (-1.03%), and Guaranty Trust Holding Company Plc (-0.21%).

The NGX Industrial Index gained ca 0.05% while the NGX Consumer Goods, Banking and Oil & Gas indices lost ca 0.54%, 0.39% and 0.31% day-on-day, respectively.

FCMB Group Plc led both the volume and value charts with ca 775.09 million units, traded at 2.96 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦418.50/US$1.00 from ₦421.50/US$1.00, the previous day.

Commodities

Global oil prices have risen in response to rising gasoline and distillate prices in the United States, as well as expectations for a recovery in crude demand in China as the country, looks to ease COVID restrictions. Brent Crude Oil price rose ca 0.69% day-on-day to settle at US$115.03pb, while WTI also gained ca 0.57% day-on-day to settle at US$114.85pb as at report time. Spot Gold gained ca 0.34% day-on-day to close at US$1,820.20 per ounce as at report time.

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