FIXED INCOME MARKET
Interbank system liquidity remained in negative territory, with an opening balance of c.-₦169.99 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended higher to settle at 14.83% and 15.00% respectively, from 14.17% and 14.67% recorded yesterday.
The NTB secondary market closed the week on a quiet note, with few trades executed across March and September 2023 NTB papers. Overall, the average rate closed ca 3bps lower, day-on-day to settle at 7.37%.
The FGN bonds market observed little action to end the week, with mixed interests observed across 2028s, 2037s, 2049s and 2050s, while demand was seen on 2024s. Overall, the average yield dipped by ca 8bps, day-on-day to settle at 13.32%.
The Eurobond space ended the week on a bearish note, with risk assets across the African markets repriced lower amid major central banks decision regarding interest rates. This week’s rate hikes across the US Feds, BoE, ECB amongst others, in a bid to tame the spiraling inflation, has spurred sell-off by global investors across the major stock and bonds markets. Overall, the average yield across the Nigerian sovereign curve settled at 12.61%.
In other news, Fitch Ratings has downgraded Ghana’s Long-Term Local- and Foreign-Currency Issuer Default Ratings (IDRs) to ‘CC’, from ‘CCC’.
The domestic bourse continued to trade bearish sentiments with selloffs observed on select stocks. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.33% day-on-day to settle at 49,026.62pts while year-to-date return dipped to +14.77%. This performance was due to profit-taking activities in stocks like BUA Cement Plc (-4.49%), and Guaranty Trust Holding Company Plc (-3.14%), respectively.
The NGX Banking and Consumer Goods Indices gained ca 0.85% and 0.10% while the NGX Industrial and Oil & Gas Indices lost ca 1.61% and 0.21%, day-on-day, respectively.
Courteville Business Solutions Plc led the volume chart with ca 27.68 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.29 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦436.33/US$1.00 from ₦436.50/US$1.00, recorded the previous day.
Global oil prices slumped to an eight-month low today, as the US dollar rose to its peak point in more than two decades and investors fretted that rising interest rates would drive major economies into recession. Brent Crude Oil price dipped ca 5.21% day-on-day to settle at US$85.75pb, while WTI lost ca 6.12% day-on-day to settle at US$78.38pb as at report time. Spot Gold fell ca 1.62% day-on-day to close at US$1,653.80 per ounce as of report time.