FIXED INCOME MARKETS
Opening system liquidity increased to c.₦456.9 billion compared to last week Friday’s opening balance of c.₦ 400.5 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) decreased to 10.50% and 10.81% respectively from 10.75% and 11.13% recorded at last week’s close.
The treasury bills market traded bearish at the early hours of today’s session, as sell interests were observed across mid-to-long end of the curve, particularly 10 Aug, and 8 Feb. The one-year paper traded around 2.50% levels, implying roughly c. 120 bps higher than the rate as of last week Friday. However, buy interests was later observed at the belly the curve. Thus, the average mid-rate improved by c.1.08% to close at 1.80%.
Activity in the local bond market was tepid, as participants tilted focus to the bond auction today, where N360bn (N90bn each) was offered across the 2028, 2032, 2037 and 2049 maturities. However, mild selling interest was noticed at the long-end, especially the on-the-run maturities (2037s and 2049s). Overall, the average mid-yield remained unaltered to settle at 13.69%.
The Eurobonds market opened the session on a bearish note, with most sell interests observed at the short-to-mid end of the curves. As the market drew to a close, buy interests were noticed at the long-end of the yield curve. Although, the Egypt curves swerved sideways across selected maturities. Overall, the market stood less aggressive, as participants anticipates the U.S C.P.I tomorrow, where consensus expect the January inflation to moderate to 6.2% from 6.5% in December 2022.
The Nigerian domestic bourse closed on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) increased by c.0.07% day-on-day to close at 54,364.67points while year-to-date return closed at c.6.08%. Buying activities on trendsetters like ZENITHBANK (+1.79%) UBA (+0.60%) and GEREGU (+0.10%) drove the bullish theme.
The NGX Banking, Industrial Goods, Consumer Goods and Oil & Gas Indices all appreciated in value by c. 0.56%, c. 0.12%, c. 0.05% and c.0.98% respectively. DANGCEM led the values charts with c. 812.89 million units while UBA led the volumes charts with c. ₦28.62 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦461.00/US$1.00 from ₦ 461.50/US$1.00 recorded at the close of last week Friday.
Oil prices eased on Monday after rising 2% in the previous session as investors shrugged off the impact of Russian output cuts, instead focusing on short-term demand concerns stemming from refinery maintenance in Asia and the United States. Brent Crude Oil price decreased by c.0.98% day-on-day to settle at US$85.54pb, while WTI decreased by c.1.02% day-on-day to settle at US$78.91pb as at the time of this report. Spot Gold declined by c.0.07% day-on-day to close at US$1,873.10 per ounce as of report time.