FIXED INCOME MARKET
Money Market
Interbank system liquidity opened higher today with a balance of ca ₦478.42 billion (buoyed by OMO maturity of ₦15billion), compared to yesterday’s opening balance of ca ₦351.13 billion. Thus, the Overnight Policy Rate (OPR) held steady at 8.50% while the Overnight Rate (O/N) trended lower to settle at 8.75% from 8.83%, recorded the previous day.
Treasury Bills
The NTB secondary market traded bullish with offers declining by c.20bps, building up to tomorrow’s NTB auction. Most of the interests were skewed to January, March, and September 2023 papers at 9.00%, 9.80%, and 12.35% respectively. Overall, the average rate closed ca 16bps lower, day-on-day, to settle at 8.61%.
Bonds
The FGN bonds market sustained a quiet theme, with few interests recorded on 2028s, 2029s, 2037s, and 2050s, respectively. Consequently, the average yield held steady, day-on-day, to settle at 14.67%.
Eurobonds
The buying theme in the Eurobond space eased earlier today, with mixed to weak interests recorded across the African curves ahead of Thursday’s inflation readings and US midterm elections. However, as trading approached a close, buying interests resurfaced across Nigerian papers, while Ghana and Angola remained weak. Overall, the average yield across the Nigerian sovereign curve settled at 12.56%.
In other news, the opposition party in Ghana plans to remove the finance minister. Also, Fitch revised Egypt’s outlook to negative; affirmed their rating at B+.
Equities
The domestic bourse closed the day with a bearish performance, following sell activity observed in bellwethers such as Dangote Cement Plc (-8.33%), MTN Nigeria Communications Plc (-2.04%), Zenith Bank Plc (-0.50%), and Guaranty Trust Holding Company Plc (0.28%), respectively. Thus, the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 1.82% day-on-day to close at 43,461.60pts, while year-to-date return reduced to +1.74%.
The NGX Oil & Gas Index gained 0.56% while the NGX Industrial, Consumer Goods, Banking Indices lost ca 3.93%, 0.58% and 0.17%, day-on-day, respectively. Access Holdings Plc topped both the volume and value charts with ca 128.73 million units traded at ca ₦1.03 billion.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to settle at ₦446.10/US$1.00 from ₦445.50/US$1.00, recorded the previous day.
Commodities
Global oil prices dipped due to heightened fears of a recession as worsening COVID-19 outbreaks in China increased concerns about lower fuel demand. Brent Crude Oil price lost ca 0.75% day-on-day to settle at US$97.18pb, while WTI dipped ca 1.10% day-on-day to settle at US$90.78pb as at report time. Spot Gold gained ca 2.30% day-on-day to close at US$1,719.10 per ounce as of report time.
