FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened ca ₦19.59 billion short, lower than yesterday’s opening balance of ca ₦56.50 billion. Thus, the Overnight Policy Rate (OPR) printed higher at 14.67% from 14.50% the previous day, while the Overnight Rate (ON) held steady at 15.00%.

Treasury Bills

A lull was reflected in the NTB secondary market today, with mild interest recorded in November NTB paper at c.12.20% levels. Overall, the average rate stayed flat day-on-day at 7.49%.

Bonds

The FGN bonds market reflected a bearish theme, with mild interest observed on 2035s and 2050s at 13.05% and 13.40% respectively. Consequently, the average yield rose by c.4bps day-on-day, to settle at 12.54%.

Eurobonds

The SSA curve witnessed renewed interest across the curve, with buyside activity seen in Nigeria, Ghana, and Angola papers amid higher-than-expected ISM (US PMI monitor) data, stable oil prices and elevated UST yields. Thus, the average yield across the Nigerian sovereign curve settled at 11.82%.

On the one hand, the Bank of England (BoE) increased its benchmark rate by 50bps to 1.75%, the biggest increase in 27 years and expects inflation to rise above 13.00% by the end of the year.

Equities

The domestic bourse traded on a bearish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) declined by c.0.03% from the previous session to close at 50,582.30pts, while year-to-date return dropped to +18.41%. Market performance was dragged by sell action on BUA Cement Plc (-4.51%).

The NGX Banking and Consumer Goods indices gained ca 2.07% and 0.06% while NGX Industrial and Oil & Gas indices shed ca 1.57% and 0.05%, day-on-day, respectively.

AIICO Insurance Plc led the volume chart with ca 16.32 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦403.58 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦428.13/US$1.00 from ₦429.20/US$1.00, recorded the previous day.

Commodities

Global oil prices dropped as the market weighed tight supply against worries of a slowdown in demand fueled by concerns about slowing growth in the United States and Europe. Brent Crude Oil price lost ca 2.14% day-on-day to settle at US$94.71pb, while WTI dipped ca 1.65% day-on-day to settle at US$89.16pb as at report time. Spot Gold gained ca 1.35% day-on-day to close at US$1,800.50per ounce as of report time.

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