FIXED INCOME MARKET
Interbank system liquidity tapered further, opening with a credit balance of ca ₦136.26 billion, compared to the previous day’s opening balance of ca ₦166.22 billion. Nonetheless, the Overnight Policy Rate (OPR) rate remained unchanged at 5.25%, while the Overnight (ON) rates trended higher to settle at 5.75% from 5.63%, recorded yesterday.
Activity in the NTB secondary market was subdued today, with only a handful of trades executed across the curve, as investors anticipated the result of the Primary Market Auction (PMA) conducted. Overall, the average rates remained stable, day-on-day at 3.28%.
The FGN bonds market reflected a quiet theme, with only mild interest seen on the 2027s, 2028s, and 2042s. Overall, the average yield stayed flat, day-on-day at 11.03%.
The SSA Eurobonds market extended its bearish run across the curve, on account of rising inflationary pressures that have spurred global risk aversion amongst investors. Overall, the average yield settled at 8.16%.
In other news, the annual inflation rate in the UK for March increased to 7%, the highest since March of 1992, as rising food prices/commodities weighed on the country’s economy due to the ongoing Russia-Ukraine conflict.
The domestic bourse closed the day in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.34% day-on-day, to close at 47,367.31pts. The market year-to-date returns extended to +10.89%, as investors’ optimistic sentiments spurred buying interest on stocks such as Guaranty Trust Holding Company Plc (+3.17%), First Bank of Nigeria Holdings Plc (+2.20%), and MTN Nigeria Communications Plc (+0.90%), respectively.
The NGX Banking, Consumer Goods, and Oil & Gas indices gained ca 0.56%, 0.03%, and 0.03%, day-on-day, respectively. The NGX Industrial Index closed flat.
Guaranty Trust Holding Company Plc led the volume chart with ca 65.89 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦4.83 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦416.67/US$1.00 from ₦416.63/US$1.00, printed the previous day.
Global crude oil prices extended gains, as peace talks with Ukraine came to a halt, fueling supply concerns. Thus, Brent Crude Oil price inched up ca 2.64% day-on-day to settle at US$107.38pb, while WTI also rose ca 2.26% day-on-day to settle at US$102.92pb as at report time. Spot Gold gained ca 0.45% day-on-day to close at US$1,985.00 per ounce as at report time.