FIXED INCOME MARKET
Interbank system liquidity tightened further with an opening balance of ca ₦413.40 billion short. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (ON) stayed elevated at 15.00%.
The Treasury bills secondary market witnessed improved offers on short-dated papers, with the August and November 2022 papers trading at c.11.00% and c.12.00% respectively. However, the newly issued 1-year paper had mild demand at 6.95% levels as some players sought to fill their lost bids. Consequently, the average rate rose by c.7bps day-on-day, to close at 7.33%.
Activity in the FGN bonds secondary market maintained a quiet theme, albeit mixed interest was seen on 2032s, 2042s, and 2050s. Overall, the average yield stayed relatively flat, day-on-day to settle at 12.27%.
Yesterday’s expected 75bps rate hike by the US Feds spurred a risk-on sentiment in the SSA and other African Eurobond markets, with renewed buying interest recorded across the curve. Overall, the average yield across the Nigerian sovereign curve settled at 12.67%.
The domestic bourse closed the day on a bearish note, as sustained sell activity pushed market performance southward. The Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 1.04% day-on-day to close at 49,667.14pts, while market year-to-date returns dropped to ca +16.27%. Sell action was seen on bellwethers like Nestle Nigeria Plc (-9.84%), Zenith Bank Plc (-8.25%), and Guaranty Trust Holding Company Plc (-3.57%), respectively.
The NGX Oil & Gas Index gained ca 0.59% while the NGX Consumer Goods, Banking, and Industrial indices lost ca 3.77%, 3.54%, and 0.46%, day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 38.53 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦2.03 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦426.20/US$1.00 from ₦430.00/US$1.00, recorded the previous day.
Global crude oil prices extended gains today, backed by increased investor risk appetite, declining crude stocks, and a pickup in gasoline demand in the United States. Brent Crude Oil price gained ca 1.04% day-on-day to settle at US$107.73pb, while WTI rose ca 1.00% day-on-day to settle at US$98.23b as at report time. Spot Gold gained ca 1.84% day-on-day to close at US$1,750.80per ounce as of report time.