FIXED INCOME MARKET
Interbank system liquidity opened with a balance of ca ₦298.42 billion, higher than the previous day’s opening balance of ca ₦222.37 billion as coupon payments impacted the system. However, the overnight (ON) rate remained unchanged at 5.00%, while the Overnight Policy Rate (OPR) rates trended higher to settle at 4.75% from 4.67%, the previous day.
The NTB secondary market observed a lull session with long-end offers at 3.90% levels, while bids remained sparse as participants remained cautious ahead of tomorrow’s auction. There were bids on the April and May special bills at less than 3.00 % but sell-side traders were hesitant to trade these papers. Overall, the average rates stayed stable, day-on-day to settle at 3.45%.
The FGN Bonds secondary market traded on mixed sentiments, with traction seen mostly on the 2026s, 2027s, 2028s, 2042s, and 2050s, respectively. In the near term, a bullish market is expected, as c.134bn in coupon inflows should be credited to the system and investors will seek to re-invest these funds. Overall, the average yield remained unchanged, day-on-day to close at 10.44%.
The SSA Sovereign Eurobonds traded on a mixed to bearish note, as investors await the outcome of the U.S. Federal Reserve Meeting, as well as show concerns about China and the lingering effects of Russia-Ukraine sanctions. Consequently, the average yield settled at 8.17%.
The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.19% day-on-day to close at 47,340.86pts, while market year-to-date return reduced to ca +10.83%. This performance leaned heavily to profit taking in Seplat Energy Plc (-3.03%), Guaranty Trust Holding Company Plc (-1.87%), Zenith Bank Plc (-0.74%), and MTN Nigeria Communications Plc (-0.24%), respectively.
The NGX Consumer Goods and Industrial indices gained ca 0.17% and 0.01%, while the NGX Oil and Gas and Banking indices lost ca 1.59% and 0.09%, day-on-day, respectively.
United Bank for Africa Plc led the volume chart with ca 23.41 million units while Seplat Energy Plc topped the value chart with ca ₦531.29 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained stable at ₦416.50/US$1.00.
Global crude oil prices extended losses today, as talks between Russia and Ukraine, along concerns over China’s efforts to limit the spread of Covid-19, dampened market sentiments. Thus, Brent Crude Oil price lost ca 4.51% day-on-day to settle at US$102.04pb, while WTI also dipped ca 4.61% to US$98.26pb as at report time. Spot Gold lost ca 1.52% day-on-day to settle at US$1,931.10 per ounce as at report time.