FIXED INCOME MARKET
Interbank system liquidity declined significantly today, opening with a balance of ₦36.52 billion, lower than Friday’s opening balance of ca ₦380.78 billion, due to the Apex bank’s CRR debits conducted on Friday. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates remained unchanged at 9.00% and 9.67%, respectively.
The NTB secondary market opened the week on a quiet note, albeit with a bearish bias. However, traded volumes were thin amid a lack of bids. Thus, the average rate was unchanged, day-on-day at 3.22%.
Activity in the bonds secondary market was also subdued today, as investors focused on the Primary Market Auction (PMA) conducted today. Demand was however, seen on the 2026 and 2042 papers, but sellers were standoffish. Consequently, the average yield remained unchanged day-on-day, at 10.58%.
The SSA Eurobond markets continue to monitor the ongoing Russia-Ukraine conflict, amid this, the Bank of Ghana and Egypt Central Bank announced 250 bps and 100bps hike in benchmark rate respectively, in order to rein in on rising inflationary pressures and commodity prices. The Nigerian Eurobond curve had a slightly bearish theme, with mild sell-off seen across all papers. Overall, the average yield inched up by c.11bps settle at 7.89%.
The domestic bourse sustained its negative performance to open the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.07% day-on-day to close at 47,251.93pts, while market year-to-date returns extended to ca +10.62%. Sell-offs were seen in stocks like United Bank for Africa Plc (-1.27%) and Guaranty Trust Holding Company Plc (-0.19%).
The NGX Consumer Goods and Oil and Gas indices gained ca 0.46% and 0.01% respectively, while the NGX Banking and Industrial Goods indices lost ca 0.91% and 0.01%, day-on-day.
Access Bank Plc topped the volume chart with ca 27.19 million units, while Zenith Bank Plc led the value chart with ca 534.70 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.25/US$1.00 from ₦416.50/US$1.00, the previous day.
Global crude oil prices appreciated significantly today, rising by ca US$4.00, on reports that the European Union (EU) is considering joining the U.S. in its ban against Russian oil, as tensions continue to escalate between Russia and Ukraine. Thus, Brent Crude Oil price rose ca 6.12% day-on-day to settle at US$114.48pb, while WTI also gained ca 5.73% to US$110.60pb as at report time. Spot Gold gained ca 0.35% day-on-day to settle at US$1,936.50 per ounce as at report time.