FIXED INCOME MARKET
Money Market
Interbank system liquidity opened with a negative balance of ca ₦144.04billion, not significantly different from yesterday’s opening balance. Thus, the Overnight Policy Rate (OPR) printed higher at 15.00% from 14.67% the previous day, while the Overnight Rate (ON) held steady at 15.00%.
Treasury Bills
The NTB secondary market traded on a bearish note today, with improved offers witnessed across the short to mid dated papers, especially 28 November 2022 CBN SPEB at 12.25%. Overall, the average rate rose c.13bps day-on-day, to settle at 7.78%.
Bonds
The FGN bonds secondary market was dominated by selling pressure, as offer yields increased significantly across the curve, with 2049s and 2050s also crossing the 13.60% mark amid tight system liquidity and buy-side players demanding more premium on the yield levels of the available papers. Overall, the average yield rose c.18bps day-on-day, settling at 13.00%.
Eurobonds
In the Eurobond space, activity remained soft, with mild weakness recorded across the SSA papers, most especially in Ghana, following the recent 300bps hike in its benchmark interest to 22%. Overall, the average yield across the Nigerian sovereign curve settled at 11.48%.
Equities
The domestic bourse sustained bearish sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.29% day-on-day to close at 49,546.38pts, while year-to-date returns further reduced to +15.99%. This performance leaned to profit-taking activities in stocks like Okomu Oil Palm Plc (-9.96%), Flourmills Nigeria Plc (-5.22%), and MTN Nigeria Communications Plc (-0.50%).
The NGX Banking Index gained ca 0.18% while the NGX Industrial, Consumer Goods, Oil & Gas Indices lost ca 0.51%, 0.33%, and 0.10%, day-on-day, respectively.
First Bank of Nigeria Holdings Plc led the volume chart with ca 38.97 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦558.61 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate stayed stable at ₦429.38/US$1.00.
Commodities
Global oil prices improve as gasoline consumption figures from the U.S. and anticipated cutbacks in Russian production later this year outweigh worries that a probable recession in developed economies will affect demand. Brent Crude Oil price gained ca 2.35% day-on-day to settle at US$95.85pb, while WTI rose ca 2.16% day-on-day to settle at US$90.01pb as at report time. Spot Gold dipped ca 0.26% day-on-day to close at US$1,772.00 per ounce as of report time.
