FIXED INCOME MARKET
Interbank system liquidity opened ca – ₦163.62 billion, significantly lower than yesterday’s balance of ca -₦25.36 billion. The Overnight Policy Rate (OPR) and the Overnight Rate (ON) closed at 14.75% and 15.00%, respectively.
The NTB secondary market was relatively quiet, as focus was on today’s NTB auction. However, some offers were witnessed on 03 Oct 2022 SPEB, 28 Nov 2022 SPEB, 02 May 2023 OMO, and 25 May NTB at 11.00%, 11.50%, 9.10% and 7.60%, but bids were wide in anticipation of an uptick in closing NTB auction rates. Consequently, the average rate rose by c.12bps day-on-day, to close at 7.03%.
The FGN bonds market endured a mixed theme, with demand observed on 2032s and 2050s at 13.05% and 13.35% respectively, while improved offers were seen on 2025s and 2042s at 11.30% and 13.70% respectively. Overall, the average yield dipped by c.6bps, day-on-day to settle at 12.25%.
The EMs, SSAs, and other African Eurobonds traded on a soft note with risk assets priced lower in response to IMF’s recent cuts in its global growth outlook for this year and next (warns of an outright recession) alongside the US Fed’s impending decision at the FOMC meeting. Overall, the average yield across the Nigerian sovereign curve settled at 13.08%.
The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.50% day-on-day to close at 50,188.55pts, while year-to-date returns trimmed to +17.49%. Selloff activity in Bellwethers like Access Holdings Plc (-4.49%), Guaranty Trust Holding Company Plc (-3.92%), Access Bank Plc (-1.10%), and MTN Nigeria Communications Plc (-1.30%), respectively spurred the bearish performance observed.
The NGX Consumer Goods Index gained ca 0.05% while the NGX Banking, Oil & Gas, and Industrial indices lost ca 2.34%, 1.07%, and 0.04%, day-on-day, respectively.
International Energy Insurance Plc led the volume chart with ca 637.11 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.13 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦430.00/US$1.00 from ₦431.00/US$1.00, recorded the previous day.
Global oil prices improved today, supported by production cuts in Russian gas flows to Europe, which offset concerns about demand alongside reports of draws in crude inventories and a looming U.S. interest rate hike. Brent Crude Oil price gained ca 2.08% day-on-day to settle at US$106.57pb, while WTI rose ca 2.72% day-on-day to settle at US$97.56b as at report time. Spot Gold gained ca 0.02% day-on-day to close at US$1,718.10per ounce as of report time.