FIXED INCOME MARKET
Interbank system liquidity opened with a credit balance of ₦190.81 billion, slightly higher than Friday’s opening balance of ca ₦128.34 billion. Despite the absence of significant funding activity, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 7.67% and 8.25% from 5.75% and 6.25%, recorded on Friday.
The NTB secondary market started the week on a relatively quiet note, as most market players remained cautious ahead of the scheduled NTB auction this week. Offers were mostly seen at 4.25% levels at the long end. Overall, the average rate remained stable day-on-day at 3.29%.
The FGN bonds market traded with a similar trend, albeit with a bearish tilt, especially for maturities positioned at the belly to the long end of the curve. Overall, the average yield rose ca 7bps, day-on-day at 10.98%.
The SSA Eurobonds market began the week on a bearish note, with selloffs seen across the main SSAs and Egypt papers, as investor sentiment weigh on the release of U.S. inflation data alongside the U.S. Federal Reserve and European Central Bank (ECB) meetings slated for this week. Overall, the average yield settled at 8.04%.
The domestic bourse recorded a positive session at the start of the week, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.51% day-on-day to close at 46,867.95pts, while year-to-date returns extended to +9.72%. This performance was due to the keen interest in bellwethers such as Zenith Bank Plc (+4.35%), Access Holdings Plc (+2.04%), and MTN Nigeria Communications Plc (+1.21%), respectively.
The NGX Banking, Industrial, and Consumer Goods indices gained ca 2.83%, 0.22% and 0.03%, while the NGX Oil & Gas index lost ca 0.14%, day-on-day, respectively.
Guaranty Trust Holding Company Plc led the volume chart with ca 43.25 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.03 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦417.00/US$1.00 from ₦416.67/US$1.00, on the Friday.
Global crude oil prices declined today, as the spread of Covid in China dampened investor sentiments raising concerns about the impact on oil markets and fuel demand. Thus, Brent Crude Oil price lost ca 3.76% day-on-day to settle at US$98.95pb, while WTI also dipped ca 3.57% day-on-day to settle at US$94.71pb as at report time. Spot Gold gained ca 0.51% day-on-day to close at US$1,955.50 per ounce as at report time.