FIXED INCOME MARKET
The Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 10.17% and 10.67% from 4.50% and 5.00% recorded the previous day, indicating a retraction in liquidity levels due to the bi-weekly FX retail auction alongside the possibility of a CRR debit.
The NTB market began the month on a mixed note, with mild interest seen on May 2022 SPEB and long-dated papers (Jan’23 to Mar’23) at 3.00% and 4.20% respectively, however very few trades were executed. Thus, the average rate stayed relatively flat, day-on-day, to settle at 3.23%.
The FGN bonds secondary market traded sideways today with buying interest seen on 2036s and 2045s while mild selloffs were observed on the 2042s and 2050s. Overall, the average yield dipped marginally by ca 2bps, day-on-day at 10.67%.
After the release of US employment data that backed the Fed rate hike narrative, the Eurobond market retraced its bullish momentum seen over the past few days. Inflation concerns and stalled talks between Russia and Ukraine drove sell-side activity in Nigeria, Ghana, Egypt, and Angola Papers. Overall, the average yield settled at 7.67%.
The domestic bourse recorded a bearish session at the close of the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.26% day-on-day to close at 46,842.86pts, while year-to-date returns dipped to ca +9.66%. Sell pressures were observed on stocks like Guaranty Trust Holding Company Plc (-4.02%), Transcorp Corporation of Nigeria Plc (-2.00%), First Bank of Nigeria Holdings Plc (-1.61%), and Access Holdings Plc (-0.51%), respectively.
The NGX Oil & Gas and Industrial indices lost ca 3.07% and 0.07%, while the NGX Banking index gained ca 0.02% day-on-day, respectively. The NGX Consumer Goods Index closed flat.
United Bank for Africa Plc led the volume chart with ca 47.99 million units while Zenith Bank Plc topped the value charts with ca ₦541.33 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.63/US$1.00 from ₦416.17/US$1.00, on the previous day.
Global crude oil prices stayed volatile as members of the International Energy Agency (IEA) met to discuss adding more oil reserves to the market alongside the United States scheduled 180-million-barrel release. Thus, Brent Crude Oil price dipped ca 0.34% day-on-day to settle at US$104.43pb, while WTI also dropped ca 0.85% day-on-day to US$99.44pb as at report time. Spot Gold lost ca 1.25% day-on-day to settle at US$1,929.60 per ounce as at report time.