FIXED INCOME MARKET
Interbank system liquidity opened significantly lower at c.
₦ 66.07billion long, compared to c.₦ 112.41 billion reported the previous day. However, the Overnight Policy Rate (OPR) and Overnight Rate(O/N) trended lower to print at 12.33% and 12.83% respectively from 12.67% and 13.17% recorded at yesterday’s session
The treasury bills market endured a muted theme, as most investors were standoffish ahead of tomorrow’s NTB auction. However, mild demand was observed on Oct 2022 to Dec 2022 Bills at c.8.50% levels with weak offers to match. Overall, average rate closed c.10bps lower at 7.37%.
The FGN bond market witnessed a rally on the 2042s paper, with yields crashing to 13.60% as players look to cover their short exposures. Notable demand was also observed on 2049s and 2050s, while selling interest was unsurprisingly seen on 2037s at 13.70%. Overall, average yield closed c.13bps lower at 12.56% at the close of the session.
The Eurobond market traded bullish today amid positive news across Emerging Markets (Ghana’s $3bn IMF funding to happen sooner than envisaged) and short coverings by some market players. Overall, average rate closed at 12.19%.
The domestic bourse continued to trade on a negative note as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.69% day-on-day, closing at 49,644.92pts while year-to-date returns trimmed to +16.22%. Profit-taking activities on stocks such as NB (-0.62%) and GTCO (-0.50%) drove the performance.
The NGX Industrial & Consumer Goods Indices both gained c.0.04% and 0.16% respectively, the NGX Banking Index gained c. 1.31% while the NGX Oil & Gas Index closed flat. Sterling Bank led the volume chart with c.18.30million units while MTNN topped the value charts with c.₦ 656.89million worth of trades
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦436.00/US$1.00 from ₦434.75/US$1.00 recorded the previous day.
Oil fell on Tuesday after a two-day rally as concern returned about weaker demand and the prospect of more interest rate hikes, trumping support from OPEC+’s first output target cut since 2020. Brent Crude Oil lost c.2.82% day-on-day to settle at US$93.04pb, as the WTI lost c.0.09% day-on-day to settle at US$86.76pb as at report time. Spot Gold lost c.0.51% day-on-day to close at US$1,714.80 per ounce as of report time.