FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a balance of ₦6.37 billion, lower than Friday’s opening deficit balance of ca ₦141.90 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 11.67% and 12.33% from 14.75% and 15.00% respectively, on Friday.
Activity in the NTB secondary market was subdued today, as participants focused on month-end book-keeping. However, few offers were seen on the August 2022 to February 2023 papers, but bids were scarce. Thus, average rate closed the month flat at 3.59%.
The FGN bonds secondary market was also relatively quiet today, with weak activity seen on the 2025, 2026, 2027 and 2036 maturities causing average yield to dip by 3bps, day-on-day at 10.92%.
The SSA Eurobonds’ space continues to witness a bearish theme, as escalated tensions between Russia and Ukraine persists. Thus, average rates remained stable across the Nigerian eurobonds yield curve day-on-day, to settle at 7.73%.
The Nigerian Equities market sustained its positive performance to close the month in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.14% day-on-day to settle at 47,394.53pts, while year-to-date return increased to +10.95%. This was largely supported by demand in stocks like First City Monument Bank Plc (+1.64%) and Zenith Bank Plc (+0.56%).
The NGX Banking, Consumer Goods and Industrial indices gained ca 0.55%, 0.29% and 0.18% respectively, while the NGX Oil and Gas index lost ca 0.21, day-on-day.
First City Monument Bank Plc led the volume chart with ca 104.41 million units, while Zenith Bank Plc led the value chart with ca ₦419.42 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.67/US$1.00 from ₦416.00/US$1.00, the previous day.
Global crude oil prices rose today, on rising concerns of a disruption in the energy supplies of the world’s second largest crude oil exporter, Russia, following the U.S and Western allies’ sanctions on specific Russian banks. Thus, Brent Crude oil price gained ca 2.87% day-on-day to settle at US$100.74pb, while WTI also gained ca 3.56% to US$94.85pb as at report time. Spot Gold gained by ca 1.34% day-on-day to settle at US$1,912.80 per ounce as at report time.