FIXED INCOME MARKET
Interbank system liquidity opened the week with a credit balance of ca ₦152.98 billion, compared to Friday’s opening balance of ca ₦106.89 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 9.50% and 10.25% from 9.63% and 10.50%, recorded on Friday.
The treasury bills market had a bullish theme, with bids recorded across short to mid dated papers, though offers were not readily available as sellers were wary of their reinvestment options. Overall, the average mid-rate closed c.10bps lower, day-on-day, to settle at 4.65%.
The FGN bonds market was relatively mixed, with sideways interest recorded on 2028s, 2029s, 2032s, and 2037s. Thus, the average mid yield closed ca 3bps, day-on-day to settle at 13.43%.
The Eurobond market started the week on a risk-off tone, amid the latest round of central banks’ rate hikes. The highlight of today’s session was however Ghana’s announcement of its suspension of payments on Eurobonds, Commercial term loans and most of their bilateral debts. Thus, the prices across Ghana’s Eurobond curve declined by more than 6pts, as investors tried to digest the news and evaluate their losses. Overall, the average yield across the Nigerian sovereign curve closed at 11.59%.
The domestic bourse started the week with a positive performance, sustaining its trend from the previous week. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.20% day-on-day to close at 49,414.96pts, while the year-to-date returns extended to +15.68%. Buy interest activity in stocks like Guaranty Trust Holding Company Plc (+3.35%), Access Holdings Plc (+1.18%), and United Bank for Africa Plc (+0.68%), respectively spurred the bullish trend observed.
The NGX Consumer Goods and Banking Indices gained 1.00% and 0.12%, while the NGX Oil & Gas Index lost 0.01% day-on-day, respectively.
The NGX Industrial Index closed flat. Guaranty Trust Holding Company Plc led both the volume and value charts with ca 16.61 million units, traded at 352.21 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was stable at ₦451.50/US$1.00.
Global oil prices climbed as positivity about the Chinese economy trumped worries about a global recession. Brent Crude Oil price gained ca 1.90% day-on-day to settle at US$80.41pb, while WTI rose ca 1.78% day-on-day to settle at US$75.63pb as at report time. Spot Gold gained ca 0.03% day-on-day to close at US$1,800.60 per ounce as of report time.