FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened at ca ₦247.13 billion today, significantly higher than Friday’s opening of a ca ₦89.99 billion deficit, due to late FAAC inflows. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 10.00% and 10.50% from 14.75% and 15.00%, recorded on Friday.

Treasury Bills

The Treasury bills market traded with a bearish bias to start the month, as short tenored papers were offered at double digits c.12.00%, between 9.00% and 10.00% on mid tenors, while the long end remained muted. Consequently, the average rate rose by c.10bps day-on-day, to close at 7.49%.

Bonds

The FGN bonds market endured a calm session, although the undertone was bearish as there were more sellers than buyers. Most of the offers remained skewed to 2025s, 2028s and 2042s at 11.40%, 11.70%, and 13.70% respectively. Overall, the average yield rose by c.6bps day-on-day, to settle at 12.32%.

Eurobonds

In the Eurobond space, recession risks seem to have eased concerns on how aggressive the US Fed will be as regards interest rate hikes. Thus, the SSA markets continued from last week’s close with buying interest recorded across the curve, causing average mid-price to appreciate by c.2.5ppts. Overall, the average yield across the Nigerian sovereign curve settled at 11.82%.

Equities

The domestic bourse recorded a bearish performance today, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.83% day-on-day to close at 49,950.32pts, while year-to-date returns reduced to +16.93%. This can be attributed to profit-taking on stocks like International Breweries Plc (-6.54%), and Access Holdings Plc (-1.11%), respectively.

The NGX Banking Index gained ca 0.19% while NGX Industrial and Consumer Goods indices lost ca 4.18% and 0.13%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.

Guaranty Trust Holding Company Plc led the volume chart with ca 21.37 million units while Zenith Bank Plc topped the value charts with ca ₦429.28 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦428.88/US$1.00 from ₦429.20/US$1.00, recorded on Friday.

Commodities

Global crude oil prices fell today, as dismal manufacturing data from China and Europe weighed on the demand outlook while investors braced for the outcome of the OPEC+ meeting on September supply output. Brent Crude Oil price dipped ca 4.20% day-on-day to settle at US$99.61pb, while WTI lost ca 5.23% day-on-day to settle at US$93.46pb as at report time. Spot Gold gained ca 0.24% day-on-day to close at US$1,786.10per ounce as of report time.

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