FIXED INCOME MARKET
Interbank system liquidity opened c.
₦66.19billion long amid today’s NTB Auction settlement, compared to c.₦54.40 billion reported the previous day. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate(O/N) declined to 9.67% and 10.17% respectively from 13.00% and 13.50% recorded at yesterday’s session.
The NTB market traded on a mixed to bearish note with major interest observed on the newly issued 1 year paper at 9.15% levels while offers were at c.9.00% levels, as investors tried to exit their long exposures ahead of next week’s NTB auction. Overall, average rate closed c.25bps higher at 7.52%.
Activity in the bonds market was choppy, with sideways interest recorded across the 2025, 2026, 2036, 2042 and 2050 securities. Thus, average yield closed c.5bps higher at 12.66%, at the close of the session.
The Eurobond market sustained its bullish theme with demand seen across Ghana, Nigeria, and Angola papers, amid investors mulling the US Feds’ stance on rates (Goldman Sachs raised their hike forecasts to 75 bps for September and 50bps for November).
In other news, the ECB raised their main refinancing rate by 75bps to 1.25% (EST. 1.25%) and Egypt’s inflation rate accelerated to 14.60% (the fastest in 4 years). Overall, average rate closed at 12.01%.
The domestic bourse reversed it bearish sentiments as the Nigerian Stock Exchange All Share Index (NGX ASI) climbed by 0.11% day-on-day, closing at 49,652.25pts while year-to-date returns closed at +16.24%. Buying activities on stocks such as WAPCO (+1.88%) and TRANSCORP (+1.85%) drove the performance.
The NGX Banking, Industrial & Oil & Gas Indices all gained c.1.07%, 0.16% and 0.37% respectively while the NGX Consumer Goods Index lost c.0.15%. TRANSCORP led the volume chart with c.30.97million units while MTNN topped the value charts with c.₦ 692.20million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated slightly to ₦436.33/US$1.00 from ₦436.50/US$1.00 recorded the previous day.
Oil prices edged higher today, but remained near eight-month lows, as China’s extension of COVID-19 lockdown measures exacerbated concerns that a slowdown in global economic activity would hit fuel demand. Brent Crude Oil climbed by c.1.28% day-on-day to settle at US$89.13pb, as the WTI also gained c.1.90% day-on-day to settle at US$83.50pb as at report time. Spot Gold however lost c.0.49% day-on-day to close at US$1,719.40 per ounce as of report time.