FIXED INCOME MARKET
Money Markets
The Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to 13.83% and 14.00% from 14.00% and 14.13%, recorded the previous day. However, we expect the rates to remain at elevated levels closing the week, as banks provision for the retail SMIS auction.
Treasury Bills
The NTB market traded on a mixed to bearish note amid tight system liquidity, with improved offers seen on Oct 2022, Nov 2022, and June 2023, respectively albeit bids remain scarce. Overall, average rate inched up by c.8bps, day-on-day to 4.54%.
Bonds
The FGN bonds secondary market traded on a relatively quiet note today, with mixed interests recorded on 2025s, 2026s, 2029s, 2036s and 2045s, respectively. Consequently, the average yield dipped by ca 7bps, day-on-day across the curve, to settle at 11.49%.
Eurobonds
The Eurobond market sustained its weak trading sentiments, with lower prices recorded across the SSA and other African sovereign curves amid global recession fears and rising inflationary pressures. Overall, the average yield across the Nigeria sovereign curve settled at 14.71%.
Equities
The domestic bourse closed trading activities on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.47% day-on-day, to close at 51,618.73pts, while market year-to-date return extended to 20.84%. This performance leaned heavily on investors’ positive sentiments toward stocks like First Bank of Nigeria Holdings Plc (+9.78%) and MTN Nigeria Communications Plc (+3.85%), respectively.
The NGX Consumer Goods Index lost ca 0.34% while NGX Oil & Gas and Banking indices gained ca 0.53% and 0.15%, day-on-day, respectively. The NGX Industrial Index closed flat.
Mutual Benefits Assurance Plc led the volume chart with ca 40.13 million units while Presco Plc topped the value charts with ca ₦383.18 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦420.17/US$1.00 from ₦420.50/US$1.00, recorded the previous day.
Commodities
Global crude oil prices remained volatile as investors weighed the risks of recession alongside rising interest rates and how tight supply would influence fuel demand. Brent Crude Oil price lost ca 0.52% day-on-day to settle at US$111.27pb, while WTI also dipped ca 0.72% day-on-day to settle at US$105.43pb as at report time. Spot Gold gained ca 0.03% day-on-day to close at US$1,838.90 per ounce as at report time.