FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity decreased today, opening with a balance of ₦92.97 billion,  lower than the previous day’s opening balance of ca ₦165.23 billion, due to the settlement of yesterday’s NTB PMA sale. As a result, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 12.67% and 13.17% from 9.00% and 9.50% respectively, the previous day.

Treasury Bills                                                                   

The NTB secondary market sustained its quiet stance, albeit with a bullish undertone. The newly issued 1-year NTB paper traded at 4.05% earlier in the day, however, there was some calmness in the rally following the ₦100bn OMO offer announced by the CBN. Overall, average rate dipped by 6bps, day-on-day at 4.10%.

Bonds  

The FGN bonds secondary market was relatively calm today, following the rally observed in the past few days. Some interest was seen on the 2025, 2026, 2028, 2042 and 2050 maturities. Thus, the average yield remained unchanged, day-on-day at 10.98%.

Eurobonds

Escalated tensions between Russia & Ukraine saw Brent crude oil price burst through the $100pb mark, leaving all markets (Commodities and SSA dollar-denominated Fixed income securities) in negative territory. As a result, the Nigerian Eurobonds secondary market endured a bearish theme, with the long-end papers crossing the double digit territory, as investors sustained their risk-off sentiments. The GHANA and ANGOLA papers, also witnessed a bearish trend, with yields rising c.280bps and c.180bps on average, respectively. Some calmness was however restored, as it appears the Fear-Of-Missing-Out (“FOMO”) buyers combined with short-covering players, helped reprice most papers higher. Overall, the average yield on Nigerian sovereign papers inched up 46bps, day-on-day to settle at 8.09%.

Equities

The domestic bourse closed the day with positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.14% day-on-day to settle at 47,272.04pts, while year-to-date return reduced to +10.66%. This was largely supported by demand in stocks like Seplat Petroleum Development Company Plc (+7.49%) and Guaranty Trust Holding Company Plc (+1.51%).

The NGX Consumer Goods and Banking indices lost ca 0.61% and 0.27% respectively, the NGX Oil and Gas index gained ca 3.85%, while the NGX Industrial index remained stable, day-on-day.

Custodian Investment Plc led the volume chart with ca 39.17 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦588.82 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.25/US$1.00 from ₦416.00/US$1.00, the previous day.

Commodities

Global crude oil prices recorded gains today, following reports that a cyber attack hit Ukraine’s government, foreign ministry and state security service, thereby supporting fears of escalating tensions with Russia. Brent Crude oil price gained ca 8.41% day-on-day to settle at US$104.95pb, while WTI also gained ca 8.12% to US$99.54pb as at report time. Spot Gold gained by ca 2.60% day-on-day to settle at US$1,959.70 per ounce as at report time.

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