FIXED INCOME MARKET
Interbank system liquidity opened the day with a credit balance of ca ₦293.90 billion, lower than the previous day’s opening balance of ca ₦391.78 billion, due to the NTB auction debit. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 4.50% and 5.00% from 4.83% and 5.33%, respectively.
The NTB market closed the month on a mixed note, with bids and offers adjusting in tandem with yesterday’s NTB auction result. The newly issued 1-yr paper (30 Mar’23) was the most traded today, with bids at 4.30% levels, while offers ranged between 4.10% and 4.15%. Overall, the average rate inched up by 10bps, day-on-day to 3.21%.
The FGN bonds secondary market traded sideways today, with buy interest seen on the 2026s, 2027s, and 2036s while improved offers were seen on 2028s and 2042s. Overall, the average yield rose ca 4bps, day-on-day at 10.72%.
The Ghana and Egypt papers continue to gain traction, as investors seem comfortable with current risk levels. Similarly, the Nigerian papers traded modestly bullish with cherry-picking visible across the yield curve, thus, the average yield settled at 7.61%.
In other news, Angola kept its benchmark rate at 20% while launching a tender offer for 2025s and 2028s papers worth up to $750 million.
The domestic bourse was awash with sell side activities however, the moderate buy-side interest observed on bellwethers like MTN Nigeria Communications Plc (+1.90%) and Airtel Africa Plc (+0.03%) ensured that trading performance closed on a positive note. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.13% day-on-day to close at 46,904.48pts, while year-to-date returns extended to ca +9.95%.
The NGX Consumer Goods, Banking, and Industrial indices lost ca 1.57%, 1.30%, and 0.03%, day-on-day, respectively. The NGX Oil & Gas Index closed flat.
Fidelity Bank Plc led the volume chart with ca 77.34 million units while Airtel Africa Plc topped the value charts with ca ₦1.14 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦416.17/US$1.00 from ₦417.00/US$1.00, on the previous day.
Global crude oil prices fell sharply today on speculations that the United States was exploring measures to draw into its strategic petroleum reserve, as OPEC+ remained firm to its May output agreement. Thus, Brent Crude Oil price dipped ca 4.62% day-on-day to settle at US$108.21pb, while WTI also fell ca 4.30% day-on-day to US$103.52pb as at report time. Spot Gold gained ca 0.48% day-on-day to settle at US$1,948.40 per ounce as at report time.