FIXED INCOME MARKET
Money Market

Interbank system liquidity improved today, opening ₦28.86 billion long, compared to Friday’s opening balance of ca-₦130.17 billion. Thus, the Overnight Policy Rate (OPR) dropped to 14.50% 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 quiet note with mild interest recorded across November 2022, December 2022, and January 2023 papers at c.11.50% to 12.00% levels. Overall, the average rate stayed relatively flat at 7.78%.

Bonds

The FGN bonds secondary market sustained its bearish theme with higher offer yields witnessed across the curve, as buyside players continue to resist prevailing levels – demanding more premium from sellers. Consequently, the average yield inched up by c.10bps day-on-day, to settle at 13.03%.

Eurobonds

Weak sentiments prevailed in the SSA markets, as risk assets traded much lower compared to Friday’s levels. Ghana front-end papers surpassed the 30% mark, while Nigeria and Angola fell by c.2pts and c.4pts, respectively. Overall, the average yield across the Nigerian sovereign curve settled at 12.34%.

Equities

The bearish trend in the domestic bourse was sustained as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.05% day-on-day to close at 49,346.40pts, while year-to-date returns further reduced to +15.52%. This performance was influenced by sell activity on stocks like United Bank for Africa Plc (-0.70%) and Guaranty Trust Holding Company Plc (-0.25%), respectively.

The NGX Consumer Goods and Industrial Indices gained ca 0.07% and 0.01%, while the NGX Banking and Oil & Gas Indices lost ca 0.69% and 0.07%, day-on-day, respectively.

Mutual Benefits Assurance Plc led the volume chart with ca 18.43 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦206.42 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦429.43/US$1.00 from ₦429.05/US$1.00, recorded on Friday.

Commodities

Global oil prices fell as investors’ concerns heightened on growing fears that aggressive U.S. interest rate hikes would weaken the global economy and fuel demand, while a stronger currency also weighed on price movement. Brent Crude Oil price dipped ca 0.92% day-on-day to settle at US$95.76pb, while WTI lost ca 0.85% day-on-day to settle at US$90.00pb as at report time. Spot Gold dipped ca 0.78% day-on-day to close at US$1,749.10 per ounce as of report time.

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