FIXED INCOME MARKET
Interbank system liquidity declined further into negative territory, opening with a deficit balance of ₦43.25 billion, lower than Friday’s opening balance of ca ₦173.01 billion. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended slightly lower to settle at 12.00% and 12.67% from 13.00% and 14.00% respectively, the previous day.
The NTB secondary market opened the week on a quiet note, with pockets of trades executed on CBN special bills and long dated papers at 3.60% and 4.50% respectively. Overall, the average rate dipped ca 3bps day-on-day to close at 4.10%.
The FGN bonds secondary market traded bullish, with demand seen at the short end of the curve (2025 to 2028 maturities) and the mid-dated maturities (2034s to 2037s). Consequently, the average yield declined by ca 8bps day-on-day, to settle at 11.09%.
The Nigerian Eurobonds’ space was relatively quiet today, with mild demand seen on select maturities. Overall, the average yield declined by ca 1bp, day-on-day to 7.41%.
The domestic bourse sustained its positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.20% day-on-day to settle at 47,233.91pts, while year-to-date return extended to +10.58%. This was largely supported by buy interest in GTCO (+0.95%), Zenith Bank Plc (+0.56%) and MTN Nigeria Communications Plc (+0.15%).
The NGX Banking, Consumer Goods and Industrial Goods indices gained ca 0.66%, 0.37% and 0.01% respectively, while the NGX Oil & Gas Index closed flat, day-on-day.
Transnational Corporation of Nigeria Plc led the volume chart with ca 99.26 million units, while Zenith Bank Plc led the value chart with ca ₦1.25 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.67US$1.00 from ₦416.75/US$1.00, the previous day.
Global crude oil prices recovered from some of last week’s losses, as U.S President, Joe Biden and Russia’s President Vladimir Putin plan to hold a summit on the Ukraine crisis and prospects of a nuclear deal between Iran and world powers in the next week or two. Thus, Brent Crude oil price gained ca 0.71% day-on-day to settle at US$94.18pb, while WTI also gained ca 0.64% to US$91.65pb as at report time. Spot Gold declined by ca 0.15% day-on-day to settle at US$1,896.80 per ounce as at report time.