FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened with a negative balance of -ca ₦93.82bn. Thus, the Overnight (ON) rate remained unchanged at 12.50%, while the Overnight Policy Rate (OPR) trended lower to settle at 12.25% from 12.50%, recorded yesterday.

Treasury Bills

The NTB secondary market traded on a quiet note, with offers mostly seen on August, October, January, and March papers. However, few bids were recorded across the curve, as investors stayed cautious ahead of next week’s auction. Overall, the average rate held steady, day-on-day to settle at 3.56%.

Bonds

The FGN bonds market closed the week with demand on 2023s, 2027s, 2028s, 2029s, and 2050s, but offers were limited. Amongst the highlighted papers, 2029s saw the most traction, losing c.10bps to settle at 11.18%, while an average of c.8bps was lost across the curve.

Eurobonds

Following yesterday’s aggressive selloff in the Eurobond market, the SSA market opened firmer, with buy-side activity seen across Nigeria, Ghana and Angola, as investors traded positive sentiments around China’s central bank lowering its benchmark prime loan rate (from 4.60% to 4.45%). Most traders tried to close their short positions amid the mild rally, while other investors saw good value in going long at these attractive levels. Overall, the average yield settled at 13.07%.

Equities

The domestic bourse ended the week with a negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.55% day-on-day to close at 52,979.96pts, while year-to-date returns reduced to +24.03%. This performance leaned to profit-taking activities in Bellwethers like MTN Nigeria Communications Plc (-7.78%), Guaranty Trust Holding Company Plc (-0.84%), and Zenith Bank Plc (-0.82%), respectively.

The NGX Oil & Gas, Consumer Goods, Banking, and Industrial indices gained ca 0.62%, 0.12%, 0.04% and 0.03% day-on-day, respectively.

Jaiz Bank Plc led the volume chart with ca 142.36 million units while Airtel Africa Plc topped the value charts with ca ₦1.03 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦419.03/US$1.00 from ₦420.33/US$1.00, the previous day.

Commodities

Global oil prices are on the mend, as a proposed European Union ban on Russian oil offsets concerns over economic headwinds. Brent Crude Oil price gained ca 0.42% day-on-day to settle at US$112.51pb, while WTI also rose ca 0.46% day-on-day to settle at US$112.73pb as at report time. Spot Gold dipped ca 0.16% day-on-day to close at US$1,840.90 per ounce as at report time.

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