FIXED INCOME MARKET
System liquidity opened ca ₦25.36 billion short, with the Overnight Policy Rate (OPR) and Overnight Rate (ON) staying unchanged at 14.83% and 15.00%, respectively.
The NTB secondary market was relatively calm today, with tepid activity recorded across the curve, save for mild bids recorded on 29 August 2022 at c.10.70%. Thus, the average rate stayed flat day-on-day, to close at 7.03%.
The FGN bonds secondary market witnessed sideways trading, albeit with low relatively traded volume. 2042s and 2050s observed buying interest at 13.75% and 13.55% respectively, while improved offers were seen on 2025s and 2032s at 11.20% and 12.90% respectively. Overall, the average yield inched up by c.8bps, day-on-day to settle at 12.20%.
The SSA markets reflected mixed interest, as low demand was seen on Nigerian and Angolan papers, while Ghana experienced a risk-off bias, amid mid-term budget presentation and the MPC meeting where the benchmark interest rate was left unchanged at 19.00%. Overall, the average yield across the Nigerian sovereign curve settled at 12.59%.
The domestic bourse ended the day in the red, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 1.11% day-on-day to settle at 51,400.53pts, while year-to-date return further reduced to +20.33%. The index performance continues to trend downwards amid selloffs on select stocks like MTN Nigeria Communications Plc (-6.99%), Access Holdings Plc (-1.10%), and Guaranty Trust Holding Company Plc (-0.24%), respectively.
The NGX Oil & Gas index shed ca 0.03%, while the NGX Banking, Consumer Goods, and Industrial indices gained ca 1.03%, 0.12%, and 0.04%, day-on-day, respectively.
United Bank for Africa Plc led the volume chart with ca 15.85 million units while Airtel Africa Plc topped the value charts with ca ₦1.15 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦427.17/US$1.00 from ₦430.00/US$1.00, recorded on Friday.
Global oil prices improved today, supported by a pullback in U.S. dollars and stronger equity markets in a session that undulated between supply concerns and speculations that an increase in interest rates in the United States would dampen fuel demand. Brent Crude Oil price gained ca 1.75% day-on-day to settle at US$105.01pb, while WTI rose ca 1.76% day-on-day to settle at US$96.38b as at report time. Spot Gold dipped ca 0.65% day-on-day to close at US$1,716.20per ounce as of report time.