FIXED INCOME MARKET
Interbank system liquidity opened the week with a negative balance of ca -₦34.01 billion, lower than Friday’s balance of ca ₦39.81 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 14.50% and 15.25% from 13.50% and 14.25%, respectively.
The NTB secondary market started the week on a bearish note, with improved offers observed on the CBN’s special bills and maturities across the NTB curve as market players anticipate further rate hikes. Overall, the average rates inched up by 6bps at 4.28%.
The FGN bonds secondary market traded on a muted note, as local investors stayed on the sidelines in anticipation of next week’s bond auction. Despite the tepid activity witnessed across the board, pockets of trades were executed on the 2026s, 2037s, and 2050s. Thus, average yield slightly dipped ca 2bps, day-on-day to 11.49%.
Bearish sentiments dominated the Eurobonds space, with selloffs observed across the sovereign curve. Overall, the average yield gained ca 5bps day-on-day, at 7.76%.
The domestic bourse closed the first trading day of the week in the red, with selloffs recorded BUA Foods Plc (-6.36%), United Bank for Africa (-1.21%), and Guaranty Trust Holding Company Plc (-0.20%). The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.12% day-on-day to settle at 44,399.66pts, while year-to-date return settled at +3.94%.
The NSE Industrial, Oil & Gas, and Consumer Goods indices gained ca 0.81%, 0.21% and 0.20% respectively, the NSE Banking index lost ca 0.08% day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 39.35 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦625.09 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦416.33/US$1.00 from ₦416.50/US$1.00, on Friday.
Global crude oil prices steadied at the start of the week, driven by crude supply disruptions and signs that the Omicron coronavirus variant will not disrupt fuel demand as feared. Thus, Brent Crude oil price gained ca 0.20% day-on-day to settle at US$86.23pb, while WTI also gained ca 0.23% to US$84.00pb as at report time. Spot Gold gained ca 0.13% day-on-day to settle at US$1,818.50per ounce as at report time.