FIXED INCOME MARKET
Interbank system liquidity improved significantly, opening with a deficit balance of ₦275.55 billion, lower than the previous day’s opening deficit balance of ca ₦43.27 billion, as inflows of ca ₦227.20 billion impacted the system from Open Market Operations (OMO) maturities. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended slightly lower to settle at 6.00% and 6.33% from 12.00% and 12.67% respectively, the previous day.
The NTB secondary market traded bullish today, with demand seen on the long dated maturities, causing rates to drop below the 4% mark. Overall, the average rate dipped ca 8bps day-on-day to close at 4.10%.
The FGN bonds secondary market witnessed intense buying across the curve, as investors grabbed the bargain offers amid excess liquidity and currently low call/fixed deposit rates. Thus, the average yield declined significantly by ca 27bps day-on-day, to settle at 10.96%.
Activity in the Nigerian Eurobonds space was subdued today albeit with a bearish undertone, as the prevailing tussle between Russia-Ukraine ensured there was a sustained risk-off sentiment on most dollar denominated bonds (All SSAs inclusive) amid rising oil price. Overall, the average yield on Nigerian sovereign papers inched up by 6bps, day-on-day to 7.48%.
The domestic bourse sustained its positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.03% day-on-day to settle at 47,246.90pts, while year-to-date return extended to +10.61%. This was largely supported by buy interest in United Capital Plc (+2.27%) and Guaranty Trust Holding Company Plc (+1.32%).
The NGX Industrial Goods and Oil and Gas indices gained ca 0.02% and 0.01% respectively, while the NGX Consumer Goods and Banking Indices lost ca 0.40% and 0.08%, day-on-day.
United Capital Plc led the volume chart with ca 66.10 million units, while Zenith Bank Plc led the value chart with ca ₦1.39 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.00/US$1.00 from ₦416.67/US$1.00, the previous day.
Global crude oil prices continued to trend upwards, as rising tensions between Russia and Ukraine sparked concerns that Russia may be preparing to invade Ukraine. Thus, Brent Crude oil price gained ca 1.91% day-on-day to settle at US$97.32pb, while WTI also gained ca 2.61% to US$93.45pb as at report time. Spot Gold rose by ca 0.16% day-on-day to settle at US$1,902.20 per ounce as at report time.