FIXED INCOME MARKET
Interbank system liquidity tapered today, opening with a balance of ₦173.01 billion, significantly lower than yesterday’s balance of ca ₦459.79 billion due to the funding needs on the back of the Bond auction settlement and retail FX auction. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates touched double digits to settle at 13.00% and 14.00% from 0.75% and 1.00% respectively, the previous day.
The NTB market closed the week bullish, with buy-side activity skewed to the CBN special bills at ca 4.00% levels. Overall, the average rate dipped ca 6bps day-on-day, closing at 4.10%.
The FGN bonds secondary market traded sideways, with demand witnessed at the short end of the curve (2024s to 2028s) while cherry-picking activity was seen on the 2042 maturity at sub 13.00%. Overall, the average yield declined by ca 5bps day-on-day, to settle at 11.15%.
The Nigerian Eurobonds’ space sustained mixed sentiments, evident in sideways trading amid slightly improved offers seen across board. Overall, the average yield rose by ca 2bps, day-on-day to 6.87%.
The domestic bourse closed the week on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.08% day-on-day to settle at 47,140.48pts, while year-to-date return extended to +10.36%. Buy interest was seen in stocks such as Guinness Nigeria Plc (+7.69%), Transnational Corporation of Nigeria Plc (+1.74%), Nigeria Breweries Plc (+1.05%), and United Bank for Africa Plc (+0.59%), respectively.
The NGX Consumer Goods and Banking indices gained ca 1.05% and 0.08% while NGX Oil & Gas Index lost ca 0.36% day-on-day, respectively. The NGX Industrial Index closed flat.
Julius Berger Plc topped both the volume and value charts with ca 80.46 million units traded at ca ₦2.13 billion.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦416.75/US$1.00 from ₦416.67/US$1.00, the previous day.
Global crude oil prices extended losses today, heading for a weekly loss as the likelihood of higher Iranian oil exports outweighed concerns over potential supply disruptions caused by the Russia-Ukraine situation. Thus, Brent Crude oil price dipped ca 1.72% day-on-day to settle at US$91.37pb, while WTI also lost ca 2.05% to US$89.88pb as at report time. Spot Gold declined by ca 0.15% day-on-day to settle at US$1,899.20 per ounce as at report time.