FIXED INCOME MARKET
Interbank system liquidity declined slightly today, opening with a balance of ₦112.98 billion, lower than the previous day’s opening balance of ca ₦153.93 billion. However, the Overnight Policy Rate (OPR) remained unchanged at 4.50%, while the Overnight (ON) rate trended higher to settle at 5.00% from 4.83%, the previous day.
To conclude the week, sell-side activity dominated the NTB market, although bids were scarce as traditional buyside players stayed on the sidelines ahead of the NTB auction scheduled next week. Due to the quiet trading session, the average rate held steady across the curve to close at 3.45%.
The FGN Bonds secondary market closed the week with mixed sentiments. Market activity was skewed to maturities centered on the belly of the curve – 34s, 35s, 36s, and 37s, with bids slightly wide from market offers, thus leading to a low volume of executed deals. Overall, the average yield remained stable at 10.47%.
Vladimir Putin’s comment about progressive talks between Russia and Ukraine spurred a global risk-on sentiment on dollar denominated securities and the stock market. Consequently, the Nigerian Eurobond space reacted with some buyside activity across the curve, as investors cherry-picked the relatively attractive yields. Overall, the average yield dipped by c.6bps day-on-day, at 7.87%.
The Nigerian Equities market sustained its positive performance to close the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.16% day-on-day to settle at 47,437.48pts, while year-to-date return appreciated to +11.05%. This was largely supported by buy-side activities in Bellwethers like First City Monument Bank Plc (+1.45%) and Zenith Bank Plc (+1.12%).
The NGX Banking index gained ca 0.34%, the NGX Oil and Gas index lost ca 0.35%, while the NGX Consumer Goods and Industrial Goods indices closed flat, day-on-day.
First City Monument Bank Plc led both the volume and value charts with ca 932.89 million units, traded at 3.49 billion 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, on escalating tensions between Russia and Ukraine following talks of potential supply additions from Iran, Venezuela and the United Arab Emirates, after the U.S. placed a ban on Russian oil imports. Thus, Brent Crude Oil price gained ca 1.33% day-on-day to settle at US$110.78pb, while WTI also gained ca 1.20% to US$107.35pb as at report time. Spot Gold lost ca 1.29% day-on-day to settle at US$1,976.30 per ounce as at report time.