FIXED INCOME MARKET
Interbank system liquidity reduced by ₦313.72 billion to open the week at ca. ₦139.91 billion after the CRR debits on Friday. The Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to 7.50% and 8.00% from 1.00% and 1.25%, respectively. Nonetheless, we anticipate that rates will stay in single digits in the absence of any significant funding.
The NTB secondary market witnessed improved offers on the long end of the curve, ranging from 5.10% to 5.20%, as market players continued to exit their position on auction winnings amid lackluster buy-side sentiments. Overall, the average rate rose ca 4bps day-on-day, to settle at 4.28%.
The FGN bonds secondary market saw mixed sentiments, albeit with a bearish undertone. Activity skewed towards maturities at the far end of the curve, with traction evident on the 2037s and 2050s at 12.82% and 13.00%, respectively. Overall, the average yield inched ca 6bps day-on-day, to settle at 11.64%.
The Nigerian Eurobonds started the week on a positive note, with buy interest seen across board. Overall, the average yield reduced by ca 2bps day-on-day at 7.21%.
The domestic bourse sustained a positive performance at the close of the month, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.91% day-on-day to settle at 46,624.67pts, while year-to-date return extended to +9.15%. Bellwethers like Guaranty Trust Holding Company Plc (+4.87%), MTN Nigeria Communications Plc (+3.95%), United Bank for Africa Plc (+1.78%), and Zenith Bank Plc (+1.17%) also observed stock price appreciation.
The NGX Industrial, Banking, and Oil and Gas indices gained ca 0.47%, 0.43% and 0.32% respectively, while the NGX Consumer Goods index shed ca 0.23% day-on-day.
Fidelity Bank Plc led the volume chart with ca 38.04 million units while Nigeria Exchange Group topped the value charts with ca ₦472.09 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦415.33/US$1.00 from ₦416.00/US$1.00, on Friday.
Global crude oil prices are on course for their biggest monthly gain in over a year, on the back of supply shortages and geopolitical tensions in Eastern Europe and the Middle East. Thus, Brent Crude oil price gained ca 1.09% day-on-day to settle at US$91.01pb, while WTI also increased by ca 0.08% to US$86.90pb as at report time. Spot Gold gained ca 0.53% day-on-day to settle at US$1,796.10 per ounce as at report time.