FIXED INCOME MARKET
Money Markets

Interbank system liquidity improved significantly today, closing with a credit balance of ₦78.39 billion against yesterday’s negative balance of ₦92.97 billion. Consequently, Overnight Policy Rate (OPR) and Overnight (ON) rate declined to 10.33% and 10.92% respectively from 13.83% and 14.00% reported at the previous session.

Treasury Bills

The NTB market closed the week on a quiet note, with pockets of trades executed on 29 Aug 2022 and 08 Jun 2023 bills at 4.70% and 6.05% levels respectively. Thus, average rate declined by c.4bps to 3.81% at the close of the trading session.

Bonds

The NTB market closed the week on a quiet note, with pockets of trades executed on 29 Aug 2022 and 08 Jun 2023 bills at 4.70% and 6.05% levels respectively. Thus, average rate declined by c.4bps to 3.81% at the close of the trading session.

Eurobonds

Some recovery was witnessed in the Eurobond market to close the week, as renewed interest from investors was seen across the Emerging Market and African sovereign curves. Nevertheless, the market is expected to remain fragile going into next week, due to the inherent risk-off sentiment driven by rising inflationary pressures and major central banks hiking key interest rates. Overall, average yield closed at 11.29%.  

Equities

The Nigerian equity market closed the week with negative sentiments, as the ASI depreciated further by c.1.21% from the previous session to close at 51,778.08pts. Bellwethers such as MTN Nigeria (-5.64%) and FBN Holdings (-5.37%) lost points today while year-to-date return trimmed to +21.21%.

The NGX Industrial, Banking, Consumer Goods and Oil & Gas Indices all lost c.0.01%, 2.31%, 0.64% and 0.58% respectively. JAIZ BANK led the volume chart with c.40.66 million units while Zenith Bank led the value charts with c.₦ 718.99 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate declined in value by c. ₦0.83k to ₦421.33/US $1.00 from ₦420.50/US$1.00, recorded at the previous session.

Commodities

Oil prices fell more than 4% today and was on track for a weekly decline as interest rate hikes from major central banks fuelled worries about a sharp economic slowdown.  Brent Crude Oil price lost c.4.67% to settle at US$114.16pb as the WTI also lost c.5.48% from the previous session to settle at US$111.04pb as at report time. Spot Gold gained c.0.46% to close at US$1,841.00 per ounce as at report time.

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