FIXED INCOME 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%.
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%.
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%.
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%.
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.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate stayed stable at ₦429.38/US$1.00.
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.