FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity declined today due to the settlement of the monthly bonds PMA conducted on Monday, opening with a deficit balance of ₦254.79 billion, lower than previous day’s opening balance of ca ₦125.15 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to 12.33% and 12.67% from 11.00% and 11.67% respectively, the previous day.

Treasury Bills    

The NTB secondary market had another quiet outing today, albeit with a bearish undertone on the mid to long dated maturities. However, some demand was seen on the CBN May Special bills at 3.50% levels, but offers were significantly lower at the 2.00% region. Thus, the average rate stayed relatively flat across the yield curve to settle at 3.17%.

Bonds  

The FGN bonds secondary market was bereft of much activity. Improved offers were seen on the 2036 and 2037 maturities, but bids were elevated at ca 12.15% and 12.25% levels respectively. Consequently, the average yield gained ca 3bps across the curve, to settle at 10.64%.

Eurobonds

Sentiments in the Eurobonds secondary market was weak today, albeit with a mixed undertone, as Investors continue to digest the impact of the Fed Chair’s statement regarding a potential 50bps rate hike. Overall, the average yield inched up by ca 2bps settle at 8.04%.

Equities

The domestic equities market recovered some of previous day’s losses to close the day in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained ca 0.02% day-on-day to close at 47,163.94pts, while market year-to-date returns extended to ca +10.41%. This performance is largely supported by buy-side interests on stocks such as Fidelity Bank Plc (+1.89%), Access Bank Plc (+1.02%) and United Bank for Africa (+0.66%).

The NGX Banking, Oil and Gas  and Industrial Goods indices gained ca 0.25%, 0.11% and 0.08% respectively, while the NGX Consumer Goods index traded flat, day-on-day.

Fidelity Bank Plc topped the volume chart with ca 68.82 million units, while Guaranty Trust Holding Company Plc led the value chart with ca 621.97 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate traded flat at ₦417.00/US$1.00.

Commodities

Global crude oil prices rose today, following reports of ca 1% drop in global crude oil production, due to storm damaged berths of the Caspian Pipeline Consortium (CPC), with repairs estimated to last for one and a half months. Thus, Brent Crude Oil price gained ca 5.40% day-on-day to settle at US$121.73pb, while WTI also gained ca 4.99% to US$114.72pb as at report time. Spot Gold gained ca 0.48% day-on-day to settle at US$1,930.30 per ounce as at report time.

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