FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened ca ₦188.63 billion short, slightly better than previous day’s opening negative balance of ca ₦282.46 billion. Thus, the Overnight Policy Rate (OPR) trended lower to 14.75% from 14.83%, while the Overnight Rate (ON) held steady at 15.00%.

Treasury Bills

Selling interest dominated the Treasury bills market, with improved offers witnessed across August to November 2022 NTB papers at c.11.00% levels. Overall, the average rate inched up by c.5bps day-on-day, to close at 7.03%.

Bonds

The FGN bond secondary market endured a mixed theme, as coupon inflow of c.N62billion fueled some demand across 2026s and 2042s at 11.50% and 13.65% respectively. Overall, the average yield dipped by c.11bps day-on-day to settle at 12.07%.

Eurobonds

The SSA Eurobond space extended its bullish bias today, with firm buying interest witnessed across the major markets (Angola papers most especially). Overall, the average yield across the Nigerian sovereign curve settled at 12.70%.

In other news, Ghana lawmakers approved a $750 million AFREXIM borrowing plan, the European Central Bank (ECB) also hiked its key interest rate by 50bps (Est. 25bps), and market’s forecasts seem centered around a 75bps hike by the Fed next week, as likelihood of a recession rises to 40% next year.

Equities

The domestic bourse sustained bearish sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.12% day-on-day to close at 52,122.00pts, while year-to-date returns further reduced to +22.02%. This can be attributed to the price decline in stocks like International Breweries Plc (-9.17%), First Bank of Nigeria Holdings Plc (-0.89%), and Guaranty Trust Holding Company Plc (-0.24%), respectively.

The NGX Oil & Gas index gained ca 0.09%, while the NGX Consumer Goods, Banking, and Industrial indices shed ca 0.41%, 0.36%, and 0.14%, day-on-day, respectively.

Guaranty Trust Holding Company Plc led both the volume and value charts with ca 33.85 million units, traded at 707.71 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦426.00/US$1.00 from ₦426.58/US$1.00, recorded the previous day.

Commodities

Global oil prices further declined as higher U.S. gasoline stockpiles and an interest rate hike by the ECB stoked demand concerns, while oil supply recovery from Libya and the resumption of Russia’s gas flows to Europe allayed supply worries. Brent Crude Oil price lost ca 2.13% day-on-day to settle at US$104.64pb, while WTI dipped ca 2.78% day-on-day to settle at US$97.10b as at report time. Spot Gold gained ca 0.52% day-on-day to close at US$1,709.00per ounce as of report time.

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