FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened lower at c.112.41 billion,  compared to last week Friday’s opening balance of c.₦392.48 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate(O/N) rose to 12.67% and 13.17% respectively from 12.00% and 12.50% reported on Friday.

Treasury Bills

Activity in the treasury bills market was muted, with very few bids recorded on short to mid dated CBN Special Bills at sub 11.00% levels but offers were quite far. Thus, average rate closed c.8bps lower at 7.47%.

Bonds

The FGN bonds market had a quiet outing, with mild demand witnessed on 2032, 2042 and 2050 papers, but offers were on average 10bps shy of the bids. Nonetheless, by the end of today’s session, the DMO released a revised Q3 2022 bond issuance calendar where 2042s was expunged from September’s auction offer and replaced with 2037s, this spurred a rally on the 2042 paper, losing c.30bps in the process. Overall, average yield dipped by c.15bps to 12.69% at the close of the session.

Eurobonds

The Eurobond market traded bearish with selling interest observed across the African markets, especially the oil producing nations, amid OPEC+ meeting where they agreed to cut supply by 100,000bpd in the month of October. Nigeria, Ghana and Angola Eurobonds closed on average c. 1.50pts lower, though liquidity was thin due to the US labour holiday. Overall, average rate closed at 12.29%.

Equities

The domestic bourse opened the week with bearish sentiments as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.11% day-on-day, closing at 49,991.41pts while year-to-date returns trimmed to +17.61%. Profit-taking activities on stocks such as TRANSCORP (-0.91%) and FBNH (-0.47%) drove the performance.

The NGX Industrial & Banking Indices both lost c.0.35% and 0.91% respectively, the NGX Consumer Goods Index gained c. 0.55% while the NGX Oil & Gas Index closed flat. Sterling Bank led the volume chart with c.90.90million units while MTNN topped the value charts with c.₦ 252.47million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦434.75/US$1.00 from ₦431.50/US$1.00 recorded on Friday

Commodities

Oil prices jumped more than $1.0 a barrel today, extending gains as investors eyed possible moves by OPEC+ producers to tweak production and support prices at a meeting later in the day. Brent Crude Oil gained c.3.60% day-on-day to settle at US$96.43pb, as the WTI also gained c3.03% day-on-day to settle at US$89.90pb as at report time. Spot Gold lost c.0.02% day-on-day to close at US$1,722.30 per ounce as of report time.

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