FIXED INCOME MARKET
Money Markets

Opening system liquidity declined further to ₦ 11.21billion from ₦ 23.43 billion recorded yesterday. Thus, Overnight Policy Rate (OPR) and Overnight (ON) rate remained elevated at double digit levels, closing at 13.75% and 14.00% respectively from 13.50% and 14.00% reported at yesterday’s session. 

Treasury Bills

The NTB Secondary market traded on a muted note, as market participants focused on the outcome of today’s NTB auction, where N 34.88billion was offered across tenors. We witnessed few offers on June 2023 NTB at 6.10% levels, but bids were wide. Overall, average rate remained relatively unchanged at 3.88% from the previous day.

Bonds

The FGN bonds market also traded on a calm note, however there was demand for 2026s and 2027s at 10.40% and 10.80% levels respectively, while improved offers were seen on 2035s and 2036s. Overall, average yield inched up marginally by 3bps to 11.43% at the close of the trading session.

Eurobonds

The SSA Eurobond market opened firmer today, amid the FOMC meeting scheduled for today. There was some buying interest recorded across Nigeria, Angola and Ghana papers, as investors cherry picked the attractive yield levels. Overall, average yield declined by c.23bps to 11.43% at the close of the trading session.

Equities

The Nigerian equity market sustained its bearish performance, as the ASI declined by c.0.64% from the previous session to close at 52,775.40pts. Selloffs on bellwethers such as Transnational Corporation of Nigeria (TRANSCORP) (-3.05%), FBN Holdings (-5.71%) and MTN Nigeria (-2.38%) drove todays’ negative close while year-to-date returns was recorded at +23.55%.

The NGX Banking and Consumer Goods Indices both lost c.2.01% and 0.53% respectively while the NGX Industrial and Oil & Gas Indices gained c.0.04% and 0.07% respectively. UBA led the volume chart with c.36.42 million units while GTCO continued to lead the value charts with c.₦ 531.29 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated slightly by c. N 0.75k to ₦ 420.00/US $1.00 from ₦420.75/US$1.00, recorded at the previous session

Commodities

Oil prices fell on concerns about fuel demand and global economic growth before an expected hike in interest rates by the U.S. Federal Reserve. Overall,  Brent Crude Oil price lost c.0.73% to settle at US$120.44pb as the WTI also lost c.0.87% from the previous session to settle at US$117.88pb as at report time. Spot Gold however gained c.0.58% to close at US$1,824.00 per ounce as at report time.

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