FIXED INCOME MARKET
Interbank system liquidity tapered further to open with a credit balance of ca ₦30.06 billion, significantly lower than Friday’s balance of ca ₦201.53 billion. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended slightly lower to settle at 13.75% and 14.50% from 14.00% and 14.75% respectively.
Bearish sentiments dominated the NTB secondary market today, with offers seen mostly on the mid to long dated maturities around 4.50% and 5.10% levels. However, the CBN Special bill saw mixed sentiments with interest seen on the March and May bills at 5.70% and 6.00% respectively. Overall, the average rates inched upwards by 5bps, day-on-day, at 4.27%.
The FGN bonds secondary market sustained its bullish run, with demand seen at the short-end of the yield curve, particularly the 2023 and 2026 maturities at 7.40% and 11.40% respectively. Light interest was also witnessed on the 2049 and 2050 maturities at 13.10%. Overall, the average yield lost ca 7bps, day-on-day, at 11.58%.
The Eurobonds secondary market endured a bearish theme, with sell-offs seen across the yield curve. Overall, the average yield gained 18bps day-on-day, at 7.52%.
The domestic equities market opened the week in the green as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.10% day-on-day to close at 43,897.13pts, while year-to-date returns extended to +2.76%. This performance was largely due to keen interest in stocks such as BUA Foods Plc (+9.96%), Dangote Cement Plc (+4.00%), and First Bank of Nigeria Holdings Plc (+1.27%).
The NSE Oil & Gas, Banking and Consumer Goods indices lost ca 0.58%, 0.12% and 0.05% respectively, while the NSE Industrial index gained ca 1.71% day-on-day.
BUA Foods Plc topped both the volume and value charts with ca 101.36 million units traded at ca ₦5.93 billion.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦416.50/US$1.00 from ₦416.00/US$1.00, the previous day.
Global crude prices declined today as supply disruptions due to political unrest in Libya and Kazakhstan offset worries of the rising new cases of the Omicron variant of the Coronavirus. Thus, Brent Crude oil price lost ca 0.33% day-on-day to settle at US$81.48pb, while WTI also dipped ca 0.34% to US$78.63 as at report time. Spot Gold gained ca 0.24% day-on-day to settle at US$1,792.90per ounce as at report time.