FIXED INCOME MARKET
Interbank system liquidity improved further, opening with a balance of ₦478.00 billion, higher than previous day’s opening balance of ca ₦438.27 billion. Nonetheless, the Overnight Policy Rate (OPR) was maintained at 2.00%, while the Overnight (ON) rate trended lower to settle at 2.75% from 3.00%, the previous day.
Activity in the NTB secondary market was muted again amid unattractive offers particularly at the long end of the curve. Bids were pegged at 4.00% on the February papers, while offers were at c.3.80%. Overall, average rate remained unchanged, day-on-day at 3.60%.
The FGN bonds secondary market sustained its bullish run, albeit less aggressive than previous days. Major interest was seen on the 2026, 2028, 2036 and 2042 maturities (losing ca 11bps on average). Overall, average yield lost ca 7bps across the curve to settle at 10.56%.
The Nigerian Eurobonds were pretty flat with some sideways trading seen at the short and long end of the curve. Thus, average yield declined by ca 2bps day-on-day, to settle at 7.76%. Other SSAs, Ghana in particular, traded on a bearish note amid talks of more frequent rate hikes by the US Feds, to curb the rising inflationary pressures.
The Nigerian Equities market sustained its negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.14% day-on-day to settle at 47,296.07pts, while year-to-date return dropped to +10.72%. This was largely characterized by sell-offs in Banking Stocks like United Capital Plc (-3.68%), Guaranty Trust Holding Company Plc (-1.13%), Zenith Bank Plc (-0.93%) and FirstBank of Nigeria Holdings Plc (-0.45%).
The NGX Consumer Goods, Banking, Oil and Gas and Industrial Goods indices lost ca 0.69%, 0.56%, 0.14% and 0.03% respectively, day-on-day.
Transnational Corporation of Nigeria Plc led the volume chart with ca 28.22 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦4.65 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate was unchanged at ₦416.50/US$1.00.
Global crude oil prices declined today, as the market reacted to the latest round of sanctions by Washington on Russia’s oil refining sector that raised concerns that Russian oil and gas exports could be targeted next. Thus, Brent Crude oil price lost ca 0.65% day-on-day to settle at US$112.20pb, while WTI also lost ca 1.06% to US$109.48pb as at report time. Spot Gold gained ca 0.45% day-on-day to settle at US$1,930.90 per ounce as at report time.