FIXED INCOME MARKET
Interbank system liquidity declined today, opening with a balance of ₦230.23 billion, lower than Friday’s opening balance of ca ₦370.71 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 7.00% and 7.25% from 10.17% and 10.67% recorded on Friday.
A bearish theme was witnessed in the NTB secondary market today as offers were seen on the mid to long dated maturities, but takers were very few. Thus, average rate inched up by 4bps relative to Friday’s close, to settle at 3.23%.
The FGN bonds secondary market endured subdued activity today, due to lack of clarity on yield direction. However, the market became bearish with better offers observed on 2028s, 2036s, 2042s, 2049s, and 2050s, following the release of the Q2’2022 FGN bonds calendar, which features the introduction of a new bond (2032s) alongside the reopening of 2025s and 2042s. Consequently, average yield rose by 7bps day-on-day at 10.67%.
The SSA Sovereign Eurobond curve traded bullish today amid positive US jobs data, with the Nigerian papers seeing renewed buyside interest across the curve, thus causing yields to decline by ca 10bps.
The domestic bourse opened the week with negative performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.33% day-on-day to close at 46,687.85pts, while year-to-date returns dipped to ca +9.30%. This was largely supported by sell pressure on stocks like Zenith Bank Plc (-1.79%), and MTN Nigeria Communications Plc (-0.93%).
The NGX Oil & Gas and Consumer Goods indices gained ca 0.27% and 0.20% respectively, while the NGX Banking and Industrial Goods indices lost ca 0.99% and 0.43% day-on-day.
Transnational Corporation of Nigeria Plc led the volume chart with ca 28.94 million units while Zenith Bank Plc topped the value charts with ca ₦278.40 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained unchanged at ₦416.63/US$1.00.
Global crude oil prices surged in a tumultuous trading session, on sustained concern that Russia’s invasion on Ukraine would limit global crude oil supply. This comes despite the release of strategic reserves by consuming nations. Thus, Brent Crude Oil price gained ca 3.46% day-on-day to settle at US$108.00pb, while WTI also gained ca 4.17% day-on-day to US$103.41pb as at report time. Spot Gold gained ca 0.65% day-on-day to settle at US$1,935.90 per ounce as at report time.