FIXED INCOME MARKET
Money Markets

Interbank system liquidity slipped further into the deficit zone, with an opening balance of ca – ₦207.34 billion, significantly lower than yesterday’s balance of ca -₦52.07 billion. Nonetheless, the Overnight Policy Rate (OPR) trended lower to 13.83% from 14.00% recorded in the previous session, while the Overnight Rate (O/N) remained unchanged at 14.00%.

Treasury Bills

Selling interests dominated the NTB market today due to tight system liquidity. Short-dated securities (CBN Special bills, NTBs and OMOs) were offered between 9% and 10%, while long end OMOs were offered at 6.30% but very few bids were recorded. Overall, average rate rose by c.30bps, day-on-day, to 7.04%.

Bonds

The FGN bonds market sustained a bearish bias as well, with increased offers witnessed across the short and mid dated papers. The most offered papers were 2028s, 2032s, 2036s and 2042s at 11.00%, 12.45%, 12.65% and 13.10% respectively, as market players traded sentiments around the recently released Q3 2022 FGN bonds issuance calendar and prevailing market liquidity status. Thus, average yield rose by c.10bpsday-on-day to settle at 11.55%.

Eurobonds

Mixed sentiments prevailed in the Eurobond market ahead of the release of June’s FOMC meeting minutes today. Specifically, in the SSA space, Ghana was better bid across the curve, as investors traded sentiments around the country’s meeting with the IMF today on a potential $1.5bn bailout program, while Angola suffered losses amid ETF selling. Nigeria on the one hand endured a quiet outing with minor lifts across the mid to long-dated papers. Overall, the average yield across the Nigerian sovereign curve settled at 12.24%.

Equities

The domestic bourse sustained its negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.06% day-on-day to settle at 51,556.54pts, while year-to-date return dropped to +20.69%. This was largely characterized by sell-offs in stocks like Union Bank Nigeria Plc (-9.76%), International Breweries Plc (-5.26%), Fidelity Bank Plc (-1.22%) and Guaranty Trust Holding Company Plc (-0.73%), respectively.

The NGX Banking, Oil & Gas, and Consumer Goods indices lost ca 0.60%, 0.16%, and 0.03% day-on-day, respectively. The NGX Industrial Index closed flat. Transcorp Corporation of Nigeria Plc led the volume chart with ca 15.55 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦267.09 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦427.75/US$1.00 from ₦430.00/US$1.00, recorded the previous day.

Commodities

Global crude oil prices declined further as growing fears of a global recession outweighed supply concerns. Brent Crude Oil price lost ca 2.71% day-on-day to settle at US$99.97pb, while WTI also dipped ca 3.13% day-on-day to settle at US$96.43pb as at report time. Spot Gold dropped ca 1.46% day-on-day to close at US$1,738.10 per ounce as at report time.

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