FIXED INCOME MARKET
Interbank system liquidity improved significantly today buoyed by FAAC inflows, opening with a balance of ₦438.27 billion, higher than previous day’s opening balance of ca ₦79.54 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 2.00% and 3.00% from 9.67% and 10.33% respectively, the previous day.
The NTB secondary market was again bereft of much activity, however, mild demand was seen on August, January and February papers at 3.40%, 3.90% and 4.00% levels respectively. Thus, average rate dipped by 5bps, day-on-day at 3.48%.
The FGN bonds secondary market was very active today, following inflows from FAAC payments. Demand was seen across the curve as investors continue to cherry-pick high yielding securities in a bid to invest excess cash. Overall, average yield reduced by 10bps across the curve to settle at 10.75%.
The Nigerian Eurobonds space witnessed mixed to bearish sentiments amid OPEC+ meeting and escalating tensions between Russia and Ukraine. Thus, average yield rose ca 9bps day-on-day, to settle at 7.79%.
The Nigerian Equities market returned some of previous day’s gains to close the day in the red, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.26% day-on-day to settle at 47,360.79pts, while year-to-date return dropped to +10.87%. This was largely due to sell-offs in stocks like United Capital Plc (-3.68%), Guaranty Trust Holding Company Plc (-1.11%) and Zenith Bank Plc (-0.19%).
The NGX Banking, Consumer Goods and Industrial Goods indices lost ca 1.32%, 1.28% and 0.55% respectively, while the NGX Oil and Gas index gained ca 5.09%, day-on-day.
Transnational Corporation of Nigeria Plc led the volume chart with ca 29.21 million units, while Seplat Petroleum Development Company Plc led the value chart with ca ₦826.52 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.50/US$1.00 from ₦416.67/US$1.00, the previous day.
Global crude oil prices extended gains today, trading at its highest level since 2013, as the Organization of Petroleum Exporting Countries (OPEC+) and allies iterate plans to hold production steady and increase output in April by 400,000 barrels per day. The increase in crude oil prices is also supported by sustained tensions between Russia and Ukraine. Thus, Brent Crude oil price gained ca 7.64% day-on-day to settle at US$112.95pb, while WTI also gained ca 7.49% to US$111.16pb as at report time. Spot Gold lost ca 0.47% day-on-day to settle at US$1,934.10 per ounce as at report time.