FIXED INCOME MARKET

Interbank system liquidity improved today, with an opening balance of ₦40.79 billion, higher than the previous day’s opening balance of ca ₦19.53 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 11.00% and 11.50%, respectively from 14.67% and 14.83%, recorded the previous day.

Treasury Bills

The NTB secondary market was relatively calm today, however, mild demand was witnessed on November and December 2022 OMO and CBN Special bills at c.12.00%, while offers were at c.11.90% levels. Overall, the average rate dipped ca 5bps, day-on-day to settle at 7.53%.

Bonds

The FGN bonds market sustained its bearish theme amid weak demand, as offer yields continue to trend upwards, especially on 2025s, 2029s, 2034s, and 2035s. Overall, the average yield closed c.5bps higher day-on-day, settling at 12.84%.

Eurobonds

The SSA Sovereign Eurobond space reflected a bullish theme, as yields on front-end Nigeria and Angola papers slipped to single digit, due to thin liquidity on these papers. However, Ghana witnessed mixed sentiments because of Fitch’s recent downgrade to ‘CCC’, amid deteriorating public finances, lack of access to bond markets, and significant decline in external liquidity. Overall, the average yield across the Nigerian sovereign curve dipped by 3bps to settle at 10.47%.

Equities

The domestic bourse reflected sell sentiment on some stocks across the board, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.12% day-on-day to settle at 50,014.60pts, while year-to-date return reduced to +17.09%. This performance was due to profit-taking activities in Bellwethers like Access Bank Holdings Plc (-1.12%), MTN Nigeria Communications Plc (-0.50%), and Guaranty Trust Holding Company Plc (-0.49%), respectively.

The NGX Industrial Index gained ca 0.10% while the NGX Banking and Consumer Goods Indices lost ca 0.62% and 0.03%, day-on-day, respectively. The NGX Oil & Gas index closed flat.

United Bank for Africa Plc led the volume chart with ca 20.45 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.22 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦430.25/US$1.00 from ₦429.00/US$1.00, recorded the previous day.

Commodities

Global oil prices rose today as the International Energy Agency (IEA) boosted its prediction for oil demand growth this year, as rising gas prices prompt some consumers to switch to oil. Brent Crude Oil price gained ca 2.22% day-on-day to settle at US$99.60pb, while WTI rose ca 2.57% day-on-day to settle at US$94.28pb as at report time. Spot Gold lost ca 0.44% day-on-day to close at US$1,805.70 per ounce as of report time.

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