FIXED INCOME MARKET

Interbank system liquidity opened c.₦71.31 billion short, significantly lower than yesterday’s opening balance of c.₦128.17 billion due to the bond auction settlement. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended higher to settle at 12.67% and 13.17% respectively, from 11.00% and 11.25% recorded yesterday.

Treasury Bills

The NTB secondary market traded on a calm note, albeit with a mixed to bearish trace. There were notable offers for November 2022, December 2022, and March 2023 NTB papers, while mild bids were evident on long-dated bills. Overall, the average rate closed ca 5bps higher, day-on-day to settle at 7.22%.

Bonds

The FGN bonds market sustained yesterday’s momentum, with sideways trading recorded across 2025s, 2032s, 2037s, 2042s, 2049s, and 2050s. Consequently, the average yield inched up by ca 7bps, to settle at 13.32%.

Eurobonds

Mixed sentiments dominated proceedings in the Eurobonds space as investors were mainly standoffish in anticipation of the US Fed’s rate decision. Overall, the average yield across the Nigerian sovereign curve settled at 12.07%.

Equities

The domestic bourse extended bearish sentiments as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.05% day-on-day to settle at 49,421.91pts, while year-to-date return reduced to +15.70%. This was due to sell-side activity on stocks like Cadbury Nigeria Plc (-5.45%), First Bank of Nigeria Holdings Plc (-3.33%), and Access Bank Holdings Plc (-1.20%), respectively.

The NGX Banking Index gained ca 0.49% while the NGX Oil & Gas, Industrial, and Consumer Goods Indices lost ca 0.10%, 0.03%, and 0.02%, day-on-day, respectively.

Zenith Bank Plc led both the volume and value charts with ca 6.30 million units, traded at ca ₦125.54 million worth of trades.

Foreign Exchange

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

Commodities

Global oil prices fell as a rising dollar and fears of a global recession countered concerns about Russia. Brent Crude Oil price lost ca 0.87% day-on-day to settle at US$89.87pb, while WTI dipped ca 0.93% day-on-day to settle at US$83.16pb as at report time. Spot Gold gained ca 0.25% day-on-day to close at US$1,675.20 per ounce as of report time.

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