FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity depreciated today, opening with a credit balance of ₦72.75 billion, compared to Thursday’s opening balance of ca ₦256.06 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower, to settle at 8.00% and 8.83% respectively from 10.83% and 11.17%, recorded on Thursday.

Treasury Bills                                                                   

The NTB secondary market witnessed sideways trading today, with some buyside activity seen on July and August papers, while notable offers were observed on the April 2023 papers at 4.30% levels. Overall, average rate stayed relatively flat day-on-day at 3.28%.

Bonds

Similarly, the FGN bonds secondary market also traded with mixed sentiments with slight demand seen on 2024, 2037, 2042, 2049 and 2050 maturities, while offers were seen on the 2026, 2028, 2035 and 2036 maturities. Overall, the average yield remained unchanged due to weak traded volumes.

Eurobonds

Global risk-off tone dominated proceedings in the Eurobonds market, following Libya’s unrest causing Oil supply issues and China vowing to repair the economic damage caused by lockdowns. The sell-off across the SSA sovereign curves exacerbated due to the Fed President, James Bullard, not ruling out a 75bp increase to combat inflation. Overall, the average yield settled at 8.17%.

Equities

The domestic bourse sustained its positive trend to open the week, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.07% day-on-day to close at 47,545.86pts, while market year-to-date returns extended to +11.31%. This was largely supported by buy interest in Fidelity Bank Plc (+1.30%) and Access Holdings Plc (+0.98%).

The NGX Banking, Oil and Gas and Industrial Goods Indices shed 0.31%, 0.02% and 0.01% respectively, while the NGX Consumer Goods indices gained ca 0.26%, day-on-day.

Fidelity Bank Plc led the volume chart with ca 33.76 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦4.72 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦417.00/US$1.00 from ₦417.50/US$1.00, printed the previous day.

Commodities

Global oil prices saw a volatile trading session today, as investors balanced demand fears against tight global supply following Libya’s suspension of some exports and as Shanghai prepared to reopen following the Coronavirus closure. Thus, Brent Crude Oil price dipped ca 4.90% day-on-day to settle at US$107.65pb, while WTI also lost ca 5.01% day-on-day to settle at US$102.79pb as at report time. Spot Gold fell ca 1.55% day-on-day to close at US$1,955.60 per ounce as at report time.

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