FIXED INCOME MARKET
Interbank system liquidity declined significantly today, opening with a balance of ₦81.54 billion, lower than Friday’s opening balance of ca ₦629.75 billion, due to outflows for retail auction settlement conducted on Friday. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rate trended lower to settle at 8.83% and 9.50% from 13.33% and 13.83%, on Friday.
The NTB secondary market opened the week with subdued trading activities. However, a few trades were executed on the April and May CBN Special bills at sub 3% levels. Overall, average rate remained unchanged, day-on-day at 3.60%.
The FGN bonds secondary market was quite bullish today, with demand seen on the 2025, 2026, 2035, 2036, 2042 and 2050 maturities at 8.20%, 10.00%, 11.85%, 11.95%, 12.70% and 12.75% levels respectively. However, executed trades remained thin as sell-side players guarded their offers closely. Overall, average yield dipped by 6bps across the curve to settle at 10.56%.
Earlier today, Brent Crude oil price touched US$139.00pb and prices of major commodities continued to soar amid escalating tensions between Russia and Ukraine, as well as talks of US and Europe banning Russian oil. The ripple effect of this news is a sustained bearish theme observed in the Eurobonds space, particularly the SSA sovereign papers. Consequently, the average yield of Nigerian Eurobonds inched up by ca 39bps day-on-day, to settle at 8.65%.
Following price depreciations in stocks such as Africa Prudential Plc (-4.41%) and Seplat Petroleum Development Company (-4.26%), the domestic bourse closed marginally lower as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.01% day-on-day to close at 47,262.61pts, while year-to-date return stood at +10.64%.
The NGX Banking and Consumer Goods indices gained ca 0.67% and 0.16% respectively, the NGX Oil and Gas index lost 2.40%, while the NGX Industrial Goods index remained flat, day-on-day.
Jaiz Bank Plc led the volume chart with ca 72.46 million units, while Guaranty Trust Holding Company Plc led the value chart with ca ₦399.01 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 continued to trend upwards, amid escalating tensions between Russia and Ukraine following reports of a possibility of a ban on Russian Oil and natural Gas. Thus, Brent Crude Oil price gained ca 1.91% day-on-day to settle at US$120.36pb, while WTI also gained ca 0.48% to US$116.24pb as at report time. Spot Gold gained ca 1.01% day-on-day to settle at US$1,988.30 per ounce as at report time.