FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened with a negative balance of ca -₦52.07 billion, significantly lower than the previous day’s balance of ca ₦1.92 billion. Consequently, the Open Buy Back (OBB) and Overnight (ON) rates stay elevated at 14.00% levels.

Treasury Bills

The NTB market traded bearish today, with most banks selling off their short-dated securities to create liquidity. The November 2022 papers were available at 8.00% levels, while the 13 April and 8 June 2023 NTB papers were offered at 5.90% and 6.05% respectively. Overall, the average rate inched up by 14bps, day-on-day, to 6.32%.

Bonds

Sideways activity was observed earlier today in the FGN bonds market, with buying interest seen on 2042s and mild selloff on 2025s, 2026s and 2032s. As the day progressed, offers increased across the short to mid dated papers by an average of c.5bps, but stayed relatively flat on the long end of the curve, following the release of Q3 2022 FGN Bonds Issuance Calendar. Thus, average yield inched up by c.6bps day-on-day to settle at 11.55%.

Eurobonds

The Eurobond market witnessed buying interests across Nigeria and Ghana sovereigns, with the latter still benefitting from the positive sentiments surrounding the potential bailout through IMF’s deal (all trading at sub 20% yield currently). Overall, the average yield across the Nigerian sovereign curve settled at 12.24%.

Equities

The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.40% day-on-day to close at 51,586.50pts, while market year-to-date return reduced to ca +20.76%.

The NGX Consumer Goods and Banking indices lost ca 0.58% and 0.53% while NGX Industrial index gained ca 0.01%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.

CAP Plc led the volume chart with ca 29.32 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦592.44 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦430.00/US$1.00 from ₦425.75/US$1.00, recorded the previous day.

Commodities

Global crude oil prices trended southward as concerns of supply disruption, highlighted by an anticipated production cut in Norway offset worries of a potential global recession. Brent Crude Oil price lost ca 9.17% day-on-day to settle at US$103.09pb, while WTI also dipped ca 8.25% day-on-day to settle at US$99.49pb as at report time. Spot Gold dropped ca 1.85% day-on-day to close at US$1,768.10 per ounce as at report time.

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