FIXED INCOME MARKETS
Money Markets
Opening system liquidity recorded a positive balance of c.₦269.80 billion, compared to yesterday’s opening balance of c.₦ 195.5 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 10.50% and 10.81% respectively from 11.88% and 12.56% recorded the previous day.
Treasury Bills
The resulting market performance from yesterday’s unprecedented uptick in stop rate at the auction was a mixed sentiment, as yields between most bids and asks were afar off. Although, most sell activities were skewed towards the long end of the curve, particularly the newly issued 1-year paper. We saw offers at 5.00% levels on the newly issued one year paper while market bid was 3.00%. The market closed bearish, as average yield soared to 5.52%.
FGN Bonds
Activities on the local bonds market was mixed-to-bearish, with buy and sell interests noticed on selected maturities. Notably, sell interests were observed on 2028 and 2037 papers, while buy interests were strongly seen on 2049 paper. Consequently, average yield widened by 11bps to 13.69%.
Eurobonds
The Eurobonds market shrugged off the hawkish minutes of U.S Federal Reserve, as market players cherry-picked papers with attractive yields. As a result, the Eurobonds market closed on a positive note, as average yield shed 24bps to 11.98%.
Equities
The Nigerian domestic bourse closed on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated in value by c.0.61% day-on-day to close at 54,646.38 points while year-to-date return closed at c.6.62%. Buying activities on pacesetters like ZENITHBANK(+0.15%) GTCO (+0.1%) and UBA (+0.05%) drove the bullish theme. The NGX Consumer Goods ,Banking, Industrial Goods and Oil &Gas Indices all appreciated in value by c. 3.79%, c. 0.39, c. 0.06 and c. 0.39% respectively. UBA led the volume charts with c. 32.42 million units, while ZENITHBANK led the value charts with c. ₦ 292.13 million worth of trades respectively.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦ 461.33/US$1.00 from ₦ 461.60/US$1.00 recorded at the close of the previous day.
Commodities
Oil prices rose slightly in thin Asian trade on Thursday, pausing from a six-day losing streak fed by mounting concerns that more aggressive interest rate increases by central banks could pressure economic growth and fuel demand. Brent Crude Oil price increased by c.0.32% day-on-day to settle at US$80.86pb, while WTI also increased by c.0.24% day-on-day to settle at US$74.13pb as at the time of this report. Spot Gold depreciated in value by c.0.39% day-on-day to close at US$1,834.40 per ounce as of report time.
