FIXED INCOME MARKET
Money Markets

Interbank system liquidity improved today (buoyed by OMO maturities worth ca ₦30 billion), opening with a credit balance of ca ₦40.67 billion, higher than yesterday’s deficit balance of ₦9.80 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates held steady at 12.33% and 12.50%, respectively.

Treasury Bills

The NTB market endured another calm session ahead of tomorrow’s NTB auction, albeit with offers on Jan to Apr bills, but bids were scarce. Overall, average rates held steady across the NTB curve to settle at 3.56%.

Bonds

The FGN bonds market had a quiet outing, as market players stayed on the sideline, anticipating the outcome of the MPC meeting. However, following the surprise 150bps benchmark rate hike by the MPC, bond yields rose on average 30bps across the curve, with offers on 42s, 49s, and 50s firmly in the >13.00% region, while bids inched up to >mid 13.00% levels. Overall, the average yield remained stable, day-on-day, to settle at 11.47%.

Eurobonds

The Eurobond market opened on a softer tone this morning following an uninspiring close in Asian and European stock markets yesterday. Thus, mixed sentiment played out in Nigeria, Ghana, and Angola, with cherry-picking of yields and occasional profit taking by investors. Overall, the average yield settled at 12.48%.

Equities

The domestic bourse traded with bearish sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 1.82% day-on-day to close at 51,949.64pts, while year-to-date returns reduced to +21.62%. The bears continue to take profits on their holdings, as bellwethers like MTN Nigeria Communications Plc (-7.63%), Guaranty Trust Holding Company Plc (-2.13%), and Dangote Cement Plc (-1.00%) observe price depletion in today’s session.

The NGX Consumer Goods, Industrial, Banking, and Oil & Gas indices lost ca 1.21%, 0.61%, 0.39%, and 0.32% day-on-day, respectively.

Ecobank Transactional Incorporated led both the volume and value charts with ca 257.63 million units, traded at 2.96 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦419.00/US$1.00 from ₦420.33/US$1.00, recorded the previous day.

Commodities

Global oil reversed earlier losses as tight global supply and an anticipated increase in fuel demand during the summer season in the United States offset fears about a possible recession and China’s COVID-19 restrictions. Brent Crude Oil price gained ca 0.08% day-on-day to settle at US$113.51pb, while WTI also dipped ca 0.44% day-on-day to settle at US$109.79pb as at report time. Spot Gold gained ca 0.99% day-on-day to close at US$1,866.10 per ounce as at report time.

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