FIXED INCOME MARKET
Interbank system liquidity improved, opening with a balance of ₦629.75 billion, higher than previous day’s opening balance of ca ₦478.00 billion. However, due to weekly retail FX auction, the Overnight Policy Rate (OPR) and Overnight (ON) rate trended higher to settle at 13.33% and 13.83% from 2.00% and 2.75%, the previous day.
Activity in the NTB secondary market sustained its quiet stance to close the week. Mild demand was seen on the January and February papers at ca 3.90% levels. Consequently, average rate remained unchanged, day-on-day at 3.60%.
The FGN bonds secondary market had a quiet outing, as the retail FX auction dampened market activity. Minor interest was however seen on the 2026, 2028, 2042 and 2050 maturities, but executed trades remained thin amid unattractive offers. Overall, average yield dipped by 2bps across the curve to settle at 10.56%.
Potential talks of frequent rate hikes by the ECB and US Fed, amid rising inflationary pressures due to skyrocketed prices of commodities, triggered a bearish theme across the SSA Eurobond curves. The Ghana papers crossed the 20.00% mark, before seeing some respite in slight buyside activity from RM parties. The long-end Nigeria and Angola papers also crossed double figures amid selloffs by desperate bears. Consequently, average yield on the Nigerian papers rose by ca 40bps day-on-day, to settle at 8.26%.
The Nigerian Equities market sustained its negative performance to close the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.06% day-on-day to settle at 47,268.66pts, while year-to-date return dropped to +10.72%. This was largely characterized by sell-offs in Bellwethers like Guaranty Trust Holding Company Plc (-1.33%), Zenith Bank Plc (-0.94%) and MTN Nigeria Communications Plc (-0.25%).
The NGX Oil and Gas and Consumer Goods indices gained ca 0.24% and 0.13% respectively, the NGX Banking index lost 0.66%, while the NGX Industrial Goods index remained flat, day-on-day.
First City Monument Bank Plc led the volume chart with ca 25.02 million units, while Zenith Bank Plc led the value chart with ca ₦344.96 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.67/US$1.00 from ₦416.50/US$1.00, the previous day.
Global crude oil reported price appreciation today, amid escalating tensions between Russia and Ukraine following reports that Europe’s largest power plant in Ukraine was on fire after an attack by Russian troops. Thus, Brent Crude oil price gained ca 3.25% day-on-day to settle at US$113.98pb, while WTI also gained ca 3.42% to US$111.35pb as at report time. Spot Gold gained ca 0.74% day-on-day to settle at US$1,950.10 per ounce as at report time.