FIXED INCOME MARKET
Interbank system liquidity opened with a balance of ₦54.03 billion, higher than previous day’s opening balance of ca ₦31.82 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 12.00% and 12.38% from 11.25% and 11.50%, respectively, due to funding provision for today’s bond auction settlement.
The NTB secondary market traded on a muted note, albeit with few trades executed on Aug’22 and Sep’22 bills. Overall, the average rate stayed flat, day-on-day, to settle at 3.55%.
The FGN bonds secondary market endured a mixed theme, with improved activity recorded on 2023s, 2028s, and 2045s at 5.15%, 11.25%, and 12.15% respectively, while mild demand was seen on 2027s, 2029s, and 2049s but offers were scarce. However, sell side action was witnessed on 2032s and 2042s at 12.44% and 12.95%, respectively, as some players look to take profit on their auction winnings. Overall, the average rate dipped marginally by 3bps, day-on-day to settle at 11.52%.
Following another round of hawkish remarks from Fed Chair Powell, the Eurobond market opened mildly bearish. Real money interest from asset managers however, prompted few buy-side action on select Nigeria sovereigns (27s, 32s, 49s, and 51s) and Ghana front end at 20% levels. Overall, the average yield settled at 12.18%.
The domestic bourse sustained its downward trend, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.07% day-on-day to close at 52,721.34pts, while year-to-date returns further reduced to +23.42% in the third trading day of the week. Sell action was observed in stocks like Transcorp Corporation of Nigeria Plc (-6.34%), First Bank of Nigeria Holdings Plc (-3.24%), and Access Holdings Plc (-1.02%), respectively.
The NGX Industrial Index dipped ca 0.19% while the NGX Consumer Goods, Oil & Gas, and Banking indices gained ca 0.29%, 0.19% and 0.10% day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 153.34 million units, traded at 1.90 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦419.25/US$1.00 from ₦418.50/US$1.00, the previous day.
Global crude prices dipped today, despite market expectations that the recent ease of China’s lockdown will boost crude demand recovery. Brent Crude Oil price lost ca 2.27% day-on-day to settle at US$109.39pb, while WTI also dipped ca 2.13% day-on-day to settle at US$110.01pb as at report time. Spot Gold lost ca 0.27% day-on-day to close at US$1,814.00 per ounce as at report time.