FIXED INCOME MARKET
Money Market
Today’s interbank system liquidity opened positive, with a balance of ₦74.51 billion, significantly higher than yesterday’s balance of ca -₦63.07 billion. Thus, the Overnight Policy Rate (OPR) remained unchanged at 16.25% while the Overnight Rate (O/N) trended lower to settle at 16.50% from 16.75% recorded the previous day.
Treasury Bills
The NTB market witnessed a quiet outing amid tight system liquidity. Offers on the newly issued 1-year paper were seen at c.12.80% but demand was scarce. Overall, the average rate inched up ca 11bps, day-on-day to settle at 9.02%.
Bonds
The FGN bonds market sustained its bearish trend, with selling interest seen across the entire curve albeit few demand were recorded on 2029s and 2037s. Overall, the average yield closed ca 5bps higher, day-on-day to settle at 14.30%.
Eurobonds
The SSA Eurobond market reflected a bearish theme earlier today, as debt restructuring talks in the Nigerian economy dampened investors’ sentiments. It however cooled off later on, as participants realized that the quotes by the Nigerian Finance Minister were taken out of context. Overall, the average yield across the Nigerian sovereign curve settled at 13.28%.
In other news, the US CPI for September came in higher than expected at 8.20% (vs Est. 8.10%), thus rekindling another round of selloffs across the SSA markets, as market prices declined on average c.1.85pts.
Equities
Another bearish session was observed at the domestic bourse today, as the Nigerian Stock Exchange All Share Index (NGX ASI) marginally declined ca 0.02% day-on-day to close at 47,524.38pts, while the year-to-date returns further reduced to +11.26%. Market performance was largely influenced by profit-taking activities on Geregu Power Plc (-9.02%).
The NGX Banking Index gained ca 0.93% while the NGX Consumer Goods and Oil & Gas Indices lost ca 0.07% and 0.07%, day-on-day, respectively. The NGX Industrial Index closed flat.
Guaranty Trust Holding Company Plc led the volume chart with ca 19.15 million units while Airtel Africa Plc topped the value charts with ca ₦923.22 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦441.83/US$1.00 from ₦440.67/US$1.00, recorded the previous day.
Commodities
Global oil prices improve on tight crude supplies, despite worries that surging inflation would reduce fuel demand and a forecast report from the International Energy Agency (IEA) that the global economy may enter a recession. Brent Crude Oil price gained ca 2.16% day-on-day to settle at US$94.45pb, while WTI rose ca 2.23% day-on-day to settle at US$89.22pb as at report time. Spot Gold lost ca 0.32% day-on-day to close at US$1,672.30 per ounce as of report time.
