FIXED INCOME MARKET
Money Market

Opening interbank system liquidity improved significantly to c.759.02 billion, compared to yesterday’s opening balance of c.₦ 67.63 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate(O/N) declined to 8.00% and 8.67% respectively from 9.00% and 9.67% reported at yesterday’s session.

Treasury Bills

The Treasury bills market witnessed ample demand across the curve for CBN Special Bills, OMO Bills and NTBs on the back of improved system liquidity. Thus, offers dropped to c.9.50% for Nov/Dec 2022 Special Bills, c.10.00% and c.7.35% levels for long-dated OMO Bills and NTBs, respectively. Overall, average rates declined by c.15bps to 7.55%.

Bonds

The FGN bonds market sustained its bullish momentum, with demand recorded across the curve especially on the 2029, 2042 and 2050 papers. Consequently, average yield dropped by c.12bps to 12.86%.

Eurobonds

Weak trading sentiment dominated today’s session in the Eurobonds’ space, with lower repricing of risk assets. Nigeria, Angola and Ghana Eurobonds traded on average c.1.25pts lower, with mid to long-dated Ghana papers recording new lows at sub $40 levels. Overall, the average yield closed higher at 12.34%.

Equities

The domestic bourse reversed its bearish trend as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.39% day-on-day, closing at 49,836.51pts while year-to-date returns improved to +16.67%. Buying sentiments on Bellwether stocks such as GUINNESS (+9.88%) and WAPCO (+4.60%) drove the performance.

The NGX Banking, Consumer Goods, Industrial and Oil & Gas Index all increased by c.0.62%, 1.80%, 0.37% and 0.33% respectively. Sterling Bank led the volume chart with c.162.45million units while MTN Nigeria topped the value chart with c.₦ 873.2 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦429.44/US$1.00 from ₦431.00/US$1.00 recorded on the previous day.

Commodities

Oil prices continued to slide on Wednesday on investor worries about the ailing state of the global economy, the prospect of central bank interest rate hikes and increased restrictions to curb Covid-19 in China. Brent Crude Oil price lost c.2.53% day-on-day to settle at US$96.80pb, as the WTI also lost c.0.91% day-on-day to settle at US$90.74pb as at report time. Spot Gold dipped by c.0.17% day-on-day to close at US$1,733.10 per ounce as of report time.

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