FIXED INCOME MARKET
Money Markets

Interbank system liquidity tightened today, opening with a deficit balance of – ₦282.46 billion, lower than the previous day’s opening of ca ₦25.04 billion due to the FGN bond auction settlement that took place today. As a result, the Overnight Policy Rate (OPR) and Overnight Rate (ON) trended higher to 14.83% and 15.00% from 14.38% and 14.50%, recorded the previous day.

Treasury Bills

The NTB secondary market was bearish, as short to mid-tenor treasury bills rates adjusted upwards in today’s session, following yesterday’s MPR hike. Offers on 29 Aug 2022, 28 Nov 2022 and Jan 2023 NTB papers were seen at c.11.00%, albeit with scarce bids. Overall, the average rate inched up by c.10bps day-on-day, to close at 7.03%.

Bonds

The FGN bond secondary market witnessed mixed sentiments, with buy interests observed on 2049s and 2050s at 13.40% levels, while sellers offered 2025s, 2032s, and 2042s at 11.00%, 12.80%, and 13.70% respectively. Overall, the average yield rose by c.14bps day-on-day to settle at 12.02%.

Eurobonds

The SSA and other African Eurobond markets observed a bullish theme amid risk-on trading, following a healthy sea of green in the US stock market, the dollar retreat, ECB potential hike, and the latest S&P midyear EM report – with a Stable outlook on most SSAs. Overall, the average yield across the Nigerian sovereign curve settled at 12.98%.

Equities

The domestic bourse saw sell pressures across stocks like Nigeria Breweries Plc (-6.13%), Guaranty Trust Holding Company Plc (-2.56%), Access Holdings Plc (-1.09%), and Zenith Bank Plc (-0.23%), respectively as the bears emerged to take profits on holdings. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.23% day-on-day to settle at 52,186.52pts, while year-to-date return reduced to +22.17%.

The NGX Consumer Goods, Oil & Gas, and Banking indices lost ca 1.01%, 0.96%, and 0.55%, day-on-day, respectively. The NGX Industrial Index closed flat.

Livingtrust Mortgage Bank Plc led the volume chart with ca 40.91 million units while Nigerian Breweries Plc topped the value charts with ca ₦1.51 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦426.58/US$1.00 from ₦424.17/US$1.00, recorded the previous day.

Commodities

Global oil prices declined in response to attempts by global central banks to contain inflation and an expected buildup in U.S. crude stockpiles as fuel demand weakens. Brent Crude Oil price lost ca 0.75% day-on-day to settle at US$106.54pb, while WTI dipped ca 1.04% day-on-day to settle at US$103.14pb as at report time. Spot Gold lost ca 0.25% day-on-day to close at US$1,706.50per ounce as of report time.

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