FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened higher at N149.69 billion vs ₦25.50 billion recorded yesterday. Despite the improvement in system liquidity, Overnight Policy Rate (OPR) and Overnight (ON) rate rose to 7.50% and 8.33% respectively compared to 6.75% and 7.50% from the previous session.

Treasury Bills

The NTB market endured a quiet session, as market participants focused on the NTB Primary Market Auction where c.N167.22bn was offered across the tenors. There were few trades executed on CBN’s Oct 2022 to Nov 2022 Special Bills at c.3.90%. Overall, average rate stayed relatively unchanged at 3.88% from previous session.

Bonds

The FGN bonds market also experienced a muted theme, with mild interest seen on 2026s, 2035s and 2042s papers at 10.35%, 12.60% and 13.25% levels respectively. Nonetheless, average yield remained flat at 11.46% amid low traded volumes.

Eurobonds

Activity in the SSA Eurobond markets remained soft, with mild selloff seen across the curve, as investors keep an eye on the US inflation data to be released later this week. The bearish theme was also aided by Ghana’s inflation hitting a new high of 27.60% and the World bank’s warning of several years of above average inflation and below average growth. Consequently, average yield inched up by c.9bps.

Equities

The equities market ended today’s session on a negative note as the ASI lost 0.14% from the previous session, closing at 53,193.98pts. Selling sentiments on bellwethers such as Access Corp. (-1.16%) and Stanbic ( -1.47%) were the major drags to performance while year-to-date returns was recorded at 24.53%.

The NGX Industrial Goods and Consumer Goods Indices both gained c.0.03% & 0.13% respectively, the NGX Banking Index lost c. 0.86% and the NGX Oil & Gas Index remained unchanged from the previous session. Transnational Corporation of Nigeria (TRANSCORP) led the volume chart with c.131.25 million units while PRESCO led the value charts with c.₦ 212.07 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated slightly to ₦420.25/US $1.00 from ₦420.75/US$1.00, recorded at the previous session.

Commodities

Oil prices rose about 2% to a 13-week high today as U.S. demand for gasoline kept rising despite record pump prices, on expectations China’s oil demand will rise and on supply concerns in several countries. Overall, Brent Crude Oil price gained c.2.84% to settle at US$123.95pb, as the WTI also rose c.2.88% from the previous session to settle at US$122.85pb as at report time. Spot Gold gained c.0.27% to close at US$1,856.90 per ounce as at report time.

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