FIXED INCOME MARKET
Interbank system liquidity opened ca ₦130.17 billion short, slightly better than yesterday’s opening balance of ca-₦144.04 billion. Thus, the Overnight Policy Rate (OPR) printed lower at 14.67% from 15.00% the previous day, while the Overnight Rate (ON) held steady at 15.00%.
The NTB secondary market reflected a bearish theme, amid tight funding needs, buoyed by the retail FX auction. Most of the selling interest was skewed to November/December 2022 CBN SPEBs at c.12.30%. Overall, the average rate rose by c.8bps day-on-day, to settle at 7.78%.
The FGN bonds secondary market closed the week bearish, with offer yields still at elevated levels, especially across the on-the-run papers- 2025s and 2042s. Overall, the average yield closed c.10bps higher day-on-day, to settle at 13.02%.
Today’s Eurobond session began quietly, with minor lifts across a few Nigerian corporates. However, bearish sentiments soon filtered through the SSA sovereigns, following some hawkish comments by selected Fed members about the extent of the rate hikes. Overall, the average yield across the Nigerian sovereign curve settled at 11.78%.
The domestic bourse closed the week on a bearish note as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.35% day-on-day to close at 49,370.62pts, while year-to-date returns reduced to +15.58%. Sell activity in Bellwethers like Access Holding Company Plc (-0.60%) spurred the negative performance observed.
The NGX Banking and Consumer Goods Indices gained ca 0.23% and 0.06% while the NGX Industrial and Oil & Gas Indices lost ca 0.32% and 0.15%, day-on-day, respectively.
First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 37.77 million units, traded at 418.67 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦429.05/US$1.00 from ₦429.38/US$1.00, recorded the previous day.
Global oil prices stay relatively steady as concerns about a global economic downturn weighed against surging inflation rates. Brent Crude Oil price gained ca 1.18% day-on-day to settle at US$97.72pb, while WTI rose ca 1.57% day-on-day to settle at US$91.92pb as at report time. Spot Gold dipped ca 0.50% day-on-day to close at US$1,762.40 per ounce as of report time.