FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened ca ₦81.86 billion short, lower than yesterday’s opening balance of ca-₦78.94 billion. Thus, the Overnight Policy Rate (OPR) trended higher to 14.83% from 14.75% recorded in the previous session, while the Overnight Rate (O/N) remained unchanged at 15.00%.

Treasury Bills

The NTB secondary market was relatively quiet, as players stayed on the sidelines ahead of tomorrow’s NTB Primary Market Auction (PMA). However, selling interest was observed on February 2023 OMO papers, while mild demand was witnessed on 28 November 2022 CBN special bills. Overall, the average rate inched up by c.8bps day-on-day, to settle at 7.23%.

Bonds

The FGN bonds market reflected a bearish theme, with higher offer yields observed across the curve but very few bids observed due to the dearth of liquidity. Thus, the average yield closed c10bps higher day-on-day, settling at 12.69%.

Eurobonds

The Eurobond market traded bullish with buying interest witnessed across the SSAs and Ghana papers parring back the losses from yesterday’s S&P downgrade. Market attention will now shift to the US CPI report tomorrow to check for any sign of a slowdown in inflation. Overall, the average yield across the Nigerian sovereign curve settled at 10.77%.

In other news, Ghana intends to double its IMF funding target to $3 billion over three years.

Equities

Trading activity in the domestic bourse was largely bearish, due to the selloff sentiments observed on some bellwethers such as Dangote Cement Plc (-9.06%) and MTN Nigeria Communications Plc (-4.29). The Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 2.26% day-on-day to close at 49,350.71pts, while market year-to-date return further reduced to ca +15.53%.

The NGX Banking Index gained ca 0.60% while NGX Industrial, Consumer Goods, and Oil & Gas indices lost ca 4.83%, 0.29%, and 0.27%, day-on-day, respectively.

Japaul Gold & Ventures Plc topped the volume chart with ca 23.18 million units, while Seplat Energy Plc led the value chart with ca 441.75 million worth of trades

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦428.75/US$1.00 from ₦431.00/US$1.00, recorded the previous day.

Commodities

Global crude oil prices improved today, despite progress talks to revive the 2015 Iran nuclear accord, which would pave the way for increased crude exports. Brent Crude Oil price rose ca 1.10% day-on-day to settle at US$97.71pb, while WTI gained ca 0.91% day-on-day to settle at US$91.59pb as at report time. Spot Gold gained ca 0.21% day-on-day to close at US$1,808.70 per ounce as of report time.

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