FIXED INCOME MARKET
Interbank system liquidity opened with a balance of ₦281.53 billion, lower than the previous day’s opening balance of ca ₦386.77 billion. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to 0.50% and 1.00% from 1.50% and 1.85% respectively, the previous day.
The NTB secondary market saw mixed reactions on the newly issued 1-year NTB paper, with bids and offers at 5.20% and 4.90% levels. Overall market activity was calm, as local investors stayed on the sidelines; unwilling to breach the 5.00% resistance level for rates. Overall, the average rate stayed relatively flat, day-on-day, to settle at 4.34%.
Despite the anticipated bond coupon and maturity of c.N654bn that hit the system today, the bullish theme in the FGN bonds market was not as strong as envisaged, with just a few axes on the 26s, 27s, 28s, 36s, and 37s. There were also sellers of the 42s and 50s, as some investors sought to take profit from their current holdings considering the buoyant system liquidity. Overall, the average yield dipped ca 4bps across the curve.
The Nigerian Eurobonds traded mixed sentiments today, with buy-side activity witnessed across the yield curve, while some offers were seen on selected maturities. Overall, the average yield was relatively unchanged day-on-day at 6.70%.
The domestic bourse ended the day in the red, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 1.12% day-on-day to settle at 46,009.23pts, while year-to-date return dropped to +7.71%. This performance was largely due to price depreciation in Dangote Cement Plc (-8.53%) and First Bank of Nigeria Holdings Plc (-1.30%).
The NGX Consumer Goods and Banking indices gained ca 1.77% and 1.08% respectively, while the NGX Industrial Goods and Oil and Gas indices shed ca 3.25% and 0.48% day-on-day.
UPDC Plc led the volume chart with ca 46.36 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦409.66 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦416.33/US$1.00 from ₦416.25/US$1.00.
Global crude oil prices rose above US$90.00pb, for the first time in 7 years, on sustained optimism of tighter crude oil supply due to geopolitical tensions between the world’s second largest oil producer, Russia and the West. Thus, Brent Crude oil price gained ca 0.87% day-on-day to settle at US$90.71pb, while WTI also increased by ca 0.81% to US$88.06pb as at report time. Spot Gold lost ca 1.20% day-on-day to settle at US$1,807.60 per ounce as at report time.