FIXED INCOME MARKET
System liquidity eased slightly today, albeit still opening in a deficit of ca -₦158.78 billion, compared to previous day’s opening balance of ca -₦220.75 billion. Consequently, 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%.
The Treasury bills market closed the week bearish, with selling interest witnessed majorly on 29 August 2022, 3 October 2022, and 28 November 2022 papers. Overall, the average rate rose by c.7bps, day-on-day, to 6.77%.
The FGN bonds secondary market witnessed subdued activity due to the retail FX auction. However, there were improved offers seen on 2025s, 2032s, and 2042s at 10.12%, 12.50%, and 13.18% respectively, as the market undertone was predominantly bearish. Overall, the average yield inched up by 5bps day-on-day to settle at 11.62%.
The Eurobonds market traded sideways with investors cherry-picking the high yielding Nigerian papers while selling interests dominated mid to long-end Ghana and Angola papers. Overall, the average yield across the Nigerian sovereign curve settled at 12.70%.
The domestic bourse recorded a mildly bearish performance today as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.01% day-on-day to settle at 51,557.41pts, while year-to-date return reduced to +20.70%. This was largely due to selloff sentiments in stocks such as Transcorp Corporation of Nigeria Plc (-3.13%), Access Bank Holdings Plc (-2.06%), and Fidelity Bank Plc (-0.31%), respectively.
The NGX Banking and Oil & Gas indices gained ca 0.15% and 0.09% while NGX Industrial index lost ca 0.05%, day-on-day, respectively. The Consumer Goods Index closed flat.
Guaranty Trust Holding Company Plc led the volume chart with ca 17.86 million units while Airtel Africa Plc topped the value charts with ca ₦528.22 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦426.13/US$1.00 from ₦428.16/US$1.00, recorded the previous day.
Global crude oil prices remained volatile as worries about a projected recession-driven decline in demand outweighed concerns about limited supply. Brent Crude Oil price gained ca 2.43% day-on-day to settle at US$107.19pb, while WTI rose ca 2.01% day-on-day to settle at US$104.82pb as at report time. Spot Gold gained ca 0.06% day-on-day to close at US$1,740.70 per ounce as at report time.