FIXED INCOME MARKET
Money Markets

Interbank system liquidity improved today, opening with a credit balance of c.₦128.17 billion, compared to yesterday’s opening balance of c.₦28.28 billion. However, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended higher to settle at 11.00% and 11.25% respectively, from 10.33% and 10.83% recorded yesterday.

Treasury Bills

The NTB secondary market reflected a quiet theme, albeit with a bearish undertone. There were notable offers on some NTB papers – November 2022, January 2023, and March 2023, but bids ranked much higher. Overall, the average rate closed ca 8bps higher, day-on-day to settle at 7.30%.

Bonds

The FGN bonds market traded mixed to bearish, following yesterday’s FGN bond auction results. 2025s, 2032s, 2035s, 2037s, 2042s and 2050s witnessed the most interest with sideways trading recorded, as market yields adjusted upwards. Consequently, the average yield inched up by ca 22bps, to settle at 13.30%.

Eurobonds

The Eurobond space observed mixed sentiments across the African markets, as investors continued to gauge their exposures ahead of tomorrow’s US Fed rate decision.  Overall, the average yield across the Nigerian sovereign curve settled at 12.26%.

In other news, Ghana’s Q2’22 GDP rose to 4.8% (Est. +2.7%) while its producer prices rose 46% y/y in August versus +41.2% in July, according to the Ghana Statistical Service.

Equities

The domestic bourse recorded a flattish performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) marginally gained 0.01% day-on-day to settle at 49,445.31pts, while year-to-date return extended to +15.75%. Buy interest was seen in stocks like First Bank of Nigeria Holdings Plc (+5.00%), Fidelity Bank Plc (+2.05%), and Zenith Bank Plc (0.25%), respectively.

The NGX Banking Index gained ca 0.22% while the NGX Oil & Gas, Consumer Goods, and Industrial Indices lost ca 2.30%, 0.05%, and 0.01%, day-on-day, respectively.

Guaranty Trust Holding Company Plc led the volume traded chart with ca 35.82 million units while MTN Nigeria Communications Plc led the value traded chart with ca ₦860.43 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate slightly appreciated to ₦436.25/US$1.00 from ₦436.50/US$1.00, recorded the previous day

Commodities

Global crude oil prices remain volatile ahead of another predicted US interest rate which could dampen economic growth and crude demand. Brent Crude Oil price lost ca 1.62% day-on-day to settle at US$90.51pb, while WTI dipped ca 1.67% day-on-day to settle at US$84.30pb as at report time. Spot Gold lost ca 0.32% day-on-day to close at US$1,672.70 per ounce as of report time.

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