FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a balance of ₦79.54 billion, lower than previous day’s opening balance of ca ₦6.37 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 9.67% and 10.33% from 11.67% and 12.33% respectively, the previous day.
The NTB secondary market sustained its quiet stance today, albeit with mild interest seen on the August papers, but offers were wide from the bids. Thus, average rate stayed relatively flat, day-on-day at 3.60%.
The FGN bonds secondary market was bullish today, demand was seen on some short and mid tenor papers, particularly the 2026, 2028 and 2036 maturities, with the latter falling c.12bps in the process. Overall, the average yield to dipped by 8bps, day-on-day at 10.81%.
The SSA Eurobonds’ space witnessed mixed sentiments as it appears the desperate bears may have found some comfort in renewed buying interest by some real money players amid fear of missing out on these attractive yield levels. The Nigerian curve was bullish overall with investors cherry-picking the attractive offers. Thus, average yield dipped 13bps day-on-day across the Nigerian eurobonds yield curve, to settle at 7.74%.
The Nigerian Equities market sustained its positive performance to open the month in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.19% day-on-day to settle at 47,482.73pts, while year-to-date return increased to +11.16%. This was largely supported by demand in bellwether stocks like MTN Nigeria Communications Plc (+1.00%) and Guaranty Trust Holding Company Plc (+0.19%).
The NGX Banking, Industrial Goods and Consumer Goods indices lost ca 0.75%, 0.27% and 0.17% respectively, while the NGX Oil and Gas index gained ca 5.37%, day-on-day.
First City Monument Bank Plc led the volume chart with ca 57.58 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦4.56 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained unchanged at ₦416.67/US$1.00.
Global crude oil prices continued to trend upwards, on sustained concerns of tightening global crude oil supply, as major oil and gas companies, such as BP and Shell, announce plans to exit Russian operations and joint ventures, following increasing tensions in Russia between Russia and Ukraine. Thus, Brent Crude oil price gained ca 6.37% day-on-day to settle at US$104.21pb, while WTI also gained ca 6.47% to US$101.91pb as at report time. Spot Gold gained by ca 1.33% day-on-day to settle at US$1,925.90 per ounce as at report time.