FIXED INCOME MARKET
Money Markets
Interbank system liquidity improved today with a positive balance of c.₦ 187.75 billion compared to c.₦ 164.24 billion recorded yesterday. However, the Overnight Policy Rate (OPR) and Overnight (ON) rate closed higher at 13.63% and 14.13% respectively from 10.88% and 11.00% recorded the previous day.
Treasury Bills
It was another bullish session in the treasury bills market, with sustained demand recorded across the mid to long dated NTB papers. The latest 1-year paper was offered at 10.50% levels, with bids hovering around c.10.90%. Overall, the average mid-rate closed c.8bps lower at 5.00% at the close of the trading session.
Bonds
The FGN bonds market endured a mixed theme ahead of next week’s bond auction. Mild selling interest was observed across 2024 and 2025 papers, while few demand was witnessed across 2026s, 2029s, 2032s, 2037s and 2049s. Thus, the average mid yield closed c.5bps higher at 14.19%.
Eurobonds
The Eurobond market closed the week on a mixed note, as earlier buyside interest recorded across the major African papers turned bearish during the day following the higher than expected US PPI (7.4% vs Est. 7.20%). Overall, the average yield across the Nigerian sovereign curve closed at 11.41%. In other news, Angola cabinet approved the $39.5bn 2023 budget.
Equities
The domestic bourse closed the day in positive territory, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.1.07% day-on-day to close at 48,881.93pts, while year-to-date returns closed higher at +14.43%. Buying interest on bellwethers like UBA (+1.37%) and FBNH (+0.93%) drove the bullish sentiment.
The NGX Banking, Oil & Gas and Industrial Indices all gained c.0.73%, 0.15% and 4.33% respectively while the NGX Consumer Index lost c.0.03% day-on-day. STERLING BANK led the volume chart c.34.19 million units while MTNN led the value charts with c.₦ 403.78 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate continued to depreciate to ₦446.50/US$1.00 from ₦446.00/US$1.00 recorded the previous day.
Commodities
LONDON — European markets advanced on Friday, as investors hope for a Chinese economic recovery as Covid-19 curbs are relaxed, while assessing the prospects for a global recession. Brent Crude Oil price gained c.0.79% day-on-day to settle at US$76.76pb, while WTI gained c.1.20% day-on-day to settle at US$72.30pb as at report time. Spot Gold gained c.0.18% day-on-day to close at US$1,804.70 per ounce as of report time.
