FIXED INCOME MARKET
Money Market
Interbank system liquidity opened the day with a credit balance of ca ₦114.81 billion compared to yesterday’s deficit balance of ₦146.42 billion as coupon inflows hit the system. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trended lower to 14.83% and 15.33% from 16.34% and 16.51%, recorded the previous day.
Treasury Bills
Post-auction trading in the NTB secondary market was mixed to bullish, with most demand skewed to April 2023 papers, while offers on the newly issued paper printed at ca 14.00%. Overall, the average rate closed ca 5bps higher, day-on-day, to settle at 9.43%.
Bonds
The FGN bonds market traded bearish earlier today in reaction to the 150bps increase in stop rate for the 1-year NTB paper, however coupon inflows fueled renewed buying interest, with most trades witnessed on 2026s, 2035s, and 2037s, respectively. Overall, the average yield closed ca 3bps higher, day-on-day, to settle at 14.47%.
Eurobonds
The Eurobond space sustained its bullish run, with further buying witnessed across the Nigeria and Angola curves amid positive equities trading. Nonetheless, Ghana and Egypt endured a softer tone, with the latter reaching a preliminary agreement with the IMF on a $3bn loan to combat soaring inflation. Overall, the average yield across the Nigerian sovereign curve settled at 13.28%.
In other news, Egypt hiked its key interest rates by 2% and switched to a more flexible exchange rate system in a bid to combat the country’s mounting economic issues.
Equities
The domestic bourse closed the day on a bearish note, with sell activity observed on stocks like Airtel Africa Plc (-2.83%), Geregu Power Plc (-1.72%), and Guaranty Trust Holding Company Plc (-1.10%), respectively. The Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.52% day-on-day to close at 44,625.18pts, while market year-to-date returns dropped to ca +4.47%.
The NGX Banking and Consumer Goods Indices gained ca 1.11% and 0.01% day-on-day, respectively. The NGX Industrial and Oil & Gas Indices closed flat.
Mutual Benefits Assurance Plc led the volume chart with ca 47.85 million units, while Airtel Africa Plc topped the value charts with ca ₦573.53 billion worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦444.50/US$1.00 from ₦441.67/US$1.00, recorded the previous day.
Commodities
Global oil prices rose further amid optimism over record US crude exports and signs that recession fears are fading. Brent Crude Oil price gained ca 1.10% day-on-day to settle at US$96.74pb, while WTI rose ca 1.43% day-on-day to settle at US$89.18pb as at report time. Spot Gold dipped ca 0.48% day-on-day to close at US$1,661.20 per ounce as of report time.
