FIXED INCOME MARKET
Interbank system liquidity nosedived to negative territory, opening with a deficit balance of ca ₦74.98 billion, lower than previous day’s balance of ca ₦30.06 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 15.50% and 16.25% from 13.75% and 14.50% respectively.
The NTB market had a lull session, with mixed sentiments seen across the mid to long end of the curve, ahead of the first NTB Primary Market Auction (PMA) of the year. The CBN Special bills traded between 5.85% and 5.95%, while there was demand for 14 April 2022 and 14 July 2022 papers at 4.35% levels. Overall, average rate stayed relatively flat at 4.27%.
The FGN bonds secondary market sustained its bullish run, with demand seen on the 2023 and 2026 maturities, while mixed sentiments played out on the 2037 and 2050 maturities. Overall, the average yield lost ca 3bps, day-on-day, at 11.57%.
The Eurobonds secondary market endured a bearish theme, with sell-offs seen across the yield curve. Overall, the average yield gained 7bps day-on-day, at 7.58%.
The domestic equities market reversed some of previous day’s gains to close the day in the red as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.09% day-on-day to close at 43,859.30pts, while year-to-date returns reduced to +2.68%. This performance was largely due to keen interest in stocks such as Nestle Plc (-7.81%), Dangote Cement Plc (-0.38%), and Guaranty Trust Holding Company Plc (-0.20%).
The NSE Oil & Gas and Banking indices gained ca 0.95% and 0.16% respectively, while the NSE Consumer Goods and Industrial Goods indices lost ca 4.76% and 0.27% day-on-day.
Transnational Corporation of Nigeria Plc led the volume chart with ca 51.53 million units, while BUA Foods Plc topped the value chart with ca ₦3.32 billion.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) traded flat at ₦416.50/US$1.00.
Global crude prices rose today, as oil producers such as Libya and Kazakhstan struggle to increase output. This comes as investors await clues from the U.S. Federal Reserve chairman on potential interest rate rises. Thus, Brent Crude oil price gained ca 0.96% day-on-day to settle at US$81.65pb, while WTI also gained ca 1.07% to US$79.08 as at report time. Spot Gold gained ca 0.41% day-on-day to settle at US$1,806.50per ounce as at report time.