FIXED INCOME MARKET
Interbank system liquidity decreased today, opening with a deficit balance of ₦141.90 billion, lower than the previous day’s opening balance of ca ₦92.97 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 14.75% and 15.00% from 12.67% and 13.17% respectively, the previous day.
The NTB secondary market sustained its quiet stance to close the week. Some interest was seen on the April and May CBN Special Bills at 2.50% and 3.00% levels respectively. Overall, average rate remained relatively flat, day-on-day at 3.59%.
The FGN bonds secondary market reflected a mixed to bullish theme, with most traction seen on the 2028, 2036, 2037 and 2042 maturities at 10.40%, 12.28%,12.45% and 12.85% levels respectively. Overall, average rate remained unchanged, day-on-day at 10.96%.
Renewed buying interest dominated the SSAs sovereign curves amid real money demand and short sellers covering their exposures following yesterday’s excessive sell-offs in reaction the escalating tensions between Russia & Ukraine. The Nigerian Eurobonds declined significantly by c.56bps on average across the curve day-on-day to settle at 7.50%.
The domestic bourse continued to trend upwards, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.12% day-on-day to settle at 47,328.42pts, while year-to-date return increased to +10.80%. This was largely supported by demand in stocks like MTN Nigeria Communications Plc (+0.50%) and First Bank of Nigeria Holdings Plc (+0.43%).
The NGX Banking and Consumer Goods indices gained ca 0.25% and 0.15% respectively, the NGX Industrial index lost ca 0.02%, while the NGX Oil and Gas index remained stable, day-on-day.
First City Monument Bank Plc led the volume chart with ca 50.12 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦434.87 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.00/US$1.00 from ₦416.25/US$1.00, the previous day.
Global crude oil prices declined today, on rising fears of a potential global supply disruption, due to U.S sanctions on the world’s second largest crude oil exporter, Russia. Thus, Brent Crude oil price lost ca 1.91% day-on-day to settle at US$97.20pb, while WTI also lost ca 1.20% to US$91.71pb as at report time. Spot Gold lost by ca 1.81% day-on-day to settle at US$1,891.80 per ounce as at report time.