FIXED INCOME MARKET

Money Markets                                                                                 

The Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 5.67% and 6.33% from 7.00% and 7.25% recorded the previous day, indicating an improvement in banking system liquidity due to expected inflows from OMO maturities.

Treasury Bills                                                                   

The NTB market remained somber, albeit with a bearish theme, as buyside interest at current rate levels continue to wane across the far mid to long dated papers. Thus, average rate inched up by 4bps day-on-day to settle at 3.23%.

Bonds

Bearish theme dominated the FGN bonds secondary market today, as players continue to trade sentiment around the Q2 2022 FGN bonds issuance calendar release. The 2027, 2028, 2035, 2042 and 2050 maturities saw the most activity with bids at 10.50%, 10.75%, 12.20%, 12.95% and 13.00% respectively. Consequently, average yield rose by ca 12bps day-on-day at 10.85%.

Eurobonds

The Nigerian Eurobond curve traded with mixed sentiments today, with sell side activity seen largely on the mid to long end of the sovereign papers, while mild buyside activity was witnessed across the corporates (Banks). Ghana, Egypt and Angola also witnessed sideways trading from players, with the latter being much quieter amid issuance from its government, to take place later this week.

Equities

The domestic equities market reversed previous day’s losses to closed the day in the green, ss the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.19% day-on-day to close at 46,777.37pts, while year-to-date returns rose to ca +9.51%. This was largely supported by demand on stocks like Zenith Bank Plc (+3.41%), Guaranty Trust Holding Company Plc (+2.52%) and Seplat Petroleum Development Company (+2.15%).

The NGX Banking and Oil & Gas indices gained ca 1.73% and 1.42% respectively, while the NGX Consumer Goods and Industrial Goods indices lost ca 0.34% and 0.05% day-on-day.

Fidelity Bank Plc led the volume chart with ca 67.43 million units while Guaranty Trust Holding Company Plc topped the value charts with ca ₦341.23 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.83/US$1.00, from ₦416.63/US$1.00 the previous day.

Commodities

Global crude oil prices continued to trend upwards, on sustained concerns of a decline of global crude oil supply, following reports that the U.S and Europe planned new sanctions to penalize Russia over alleged war crimes in Ukraine. Thus, Brent Crude Oil price gained ca 0.90% day-on-day to settle at US$108.61pb, while WTI also gained ca 1.06% day-on-day to US$104.46pb as at report time. Spot Gold gained ca 0.59% day-on-day to settle at US$1,945.40 per ounce as at report time.

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