FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity improved slightly today, opening with a deficit balance of ca ₦39.82 billion, higher than previous day’s opening deficit balance of ca ₦76.41 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 14.00% and 14.75% from 13.50% and 14.25% respectively.

Treasury Bills                               

The NTB secondary market sustained its bearish trend, with notable offers seen across the curve and on CBN’s special bills. Buyers however remained scarce as investors re-assessed market direction following the rate hike at Wednesday’s NTB auction. Thus, average rates inched up by 6bps at 4.26%.

Bonds  

The FGN bonds secondary market traded with mixed sentiments. Interest was seen on the 2026, 2037, 2045, 2049 and 2050 maturities, however, few trades were consummated due to wide bid/ask spreads. Overall, average yield inched 3bps higher, day-on-day to 11.54%.

Eurobonds

The Eurobonds secondary market was bearish today, with sell-offs seen across the yield curve. Overall, the average yield gained ca 13bp day-on-day, at 7.71%.

Equities

With sell-offs in bellwether stocks such as Dangote Cement Plc (-1.82%) and Guaranty Trust Holding Company Plc (-0.98%), the domestic bourse closed the week with negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.34% day-on-day to settle at 44,454.67pts, while year-to-date return settled at +4.07%.

The NSE Banking and Consumer Goods indices gained ca 0.26% and 0.18% respectively, the NSE Industrial Goods index gained ca 0.94%, while the NSE Oil and Gas index remained flat, day-on-day.

BUA Foods Plc led both the volume and value charts with ca 102.57 million units, traded at ca ₦6.76 billion.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦416.50/US$1.00.

Commodities

Global crude oil prices hung on to gains today, on rising optimism that the negative effect of the omicron coronavirus variant on global crude oil demand and the global economy. Thus, Brent Crude oil price gained ca 0.28% day-on-day to settle at US$84.71pb, while WTI also gained ca 0.06% to US$82.17pb as at report time. Spot Gold gained ca 0.17% day-on-day to settle at US$1,825.10per ounce as at report time.

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