FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a credit balance of ₦459.79 billion, up from yesterday’s balance of ca ₦440.28 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates reduced to 0.75% and 1.00% from 1.00% and 1.28% respectively, the previous day.
The NTB market sustained the bullish theme witnessed over past few days amid ample system liquidity. Rates across board dipped on average 10bps, with offers across the mid to long tenors dropping to sub 4.00%.
The FGN bonds secondary market traded on a bullish note today, with the 2026s being the most sought-after paper, following the dip in the marginal rate at yesterday’s auction for the 2026 maturity. Most of the demand was skewed to the short end of the curve, while mixed sentiments played out in 2042s and 2050s. Overall, the average yield dipped ca 13bps day-on-day, to settle at 11.28%.
The Nigerian Eurobonds space alongside other SSAs reflected a mildly bearish theme, as investors continue to trade the risk-off sentiment buoyed by the Russian-Ukraine tussle. Overall, the average yield on the Nigerian Eurobond papers rose by ca 2bps, day-on-day to 6.85%.
The domestic bourse recorded a mildly bearish performance today as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.01% day-on-day to settle at 47,102.64pts, while year-to-date return reduced to +10.27%. This was largely due to selloff sentiments in bellwether stocks such as Zenith Bank Plc (-0.19%) and MTN Nigeria Communications Plc (-0.10%).
The NGX Banking, Consumer Goods, Industrial indices were up ca 0.36%, 0.22%, and 0.11% while the NGX Oil & Gas Index was down ca 3.08% day-on-day, respectively.
Guaranty Trust Holding Company Plc topped both the volume and value charts with ca 130.14 million units traded at ca ₦3.42 billion.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦416.67/US$1.00 from ₦416.50/US$1.00, the previous day.
Global crude oil prices fell today, as discussions to restore a nuclear deal with Iran approached the final stages, but losses were limited by escalated tensions between Russia, the world’s largest energy exporter, and the West over Ukraine. Thus, Brent Crude oil price dipped ca 2.16% day-on-day to settle at US$92.74pb, while WTI also lost ca 2.26% to US$91.62pb as at report time. Spot Gold rose ca 1.39% day-on-day to settle at US$1,897.60 per ounce as at report time.