FIXED INCOME MARKETS
Money Markets
System liquidity remained elevated at c.₦ 1.22 trillion, vs c.₦ 1.02 billion recorded the previous day. Overall, the Overnight Policy Rate (OPR) remained unchanged at 10.50% while the Overnight Rate (O/N) declined to 10.88% from 11.00% recorded yesterday.
Treasury Bills
The Treasury bills market traded bullish, as investors scrambled for available papers despite the low rates. Bids on Mar 2023, Apr 2023, Jun 2023 and Jan 2024 Bills were seen at 0.40%, 0.55%, 0.95% and 2.65% levels respectively, but offers were c.20bps lower. Thus, the average mid-rate closed c.7bps lower at 3.58%.
Bonds
Activity in the FGN bonds market was mixed to bullish, with most of the demand skewed to 2028s, 2029s and 2049s (mostly T+1 trades) as investors were keen to invest their cash ahead of a possible CRR debit exercise later this week. There were also mild sellers of 2035s and 2036s, but no traction was recorded at that end. Overall, the average mid-yield declined by c.4bps to 13.99%.
Eurobonds
The Eurobond space rebounded today after days of weakness, amid lower ratings of most sovereigns and central banks interest rate decisions. Thus, most SSAs and MENAs papers parred back some of the losses with price appreciation of c.1.25pts. The markets await the US Fed’s rate decision later today, where a 25bps hike is expected and would also keep a close tab on Fed Chair Powell’s post-announcement comments. Overall, the average yield on the Nigerian curve settled at 10.33%.
Equities
The domestic bourse remained bullish to start the new month, as the Nigerian Stock Exchange All Share Index (NGX ASI) rose by c.0.49% day-on-day to close at 53,499.68 points while market year-to-date return closed higher at c.4.39%. Demand across bellwethers such as NESTLE (+1.84%) and GTCO (+0.40%) drove the bullish sentiment.
The NGX Banking and Oil &Gas Indices both gained c. 1.22% and 3.61% respectively, while the NGX Industrial and Consumer Goods Indices lost c. 0.02% and 0.11% respectively. UNIVINSURE led the volume chart with c.57.79 million while GEREGU topped the values charts and c.₦ 1.64 billion worth of trades
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained unchanged at ₦ 461.50/US$1.00 recorded the previous day.
Commodities
Oil prices ticked up as the market is looking towards a meeting of OPEC and its allies as well as a Federal Reserve rate decision and U.S. government data on crude and fuel stockpiles today.. Brent Crude Oil price gained c.0.22% day-on-day to settle at US$85.18.pb, while WTI gained c.0.89% day-on-day to settle at US$78.85b as at the time of this report. Spot Gold also climbed marginally c.0.01% day-on-day to close at US$1,945.40 per ounce as of report time.
