FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity improved today, opening with a balance of ₦58.02 billion, compared to previous day’s opening position of ca ₦21.82 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower, to settle at 6.50% and 7.17% respectively from 12.33% and 12.67%, recorded the previous day.

Treasury Bills                                                                   

The NTB secondary market was quiet today, with offers seen across the mid to long tenored maturities. Consequently, the average rate stayed relatively flat across the curve at 3.60%.

Bonds

The FGN bonds secondary market continued to trade with mixed sentiments, with demand seen on the 2024, 2042 and 2050 maturities, while offers were seen on 2026 and 2028 maturities. Overall, average yield remained unchanged at 11.03%, amid lack of real market activity, fueled by uncertainty in rate direction.

Eurobonds

The Eurobond market opened on a positive note, with mild short coverings on the short end of the Ghana curve. However, by midday, the rally had halted across all SSA sovereign papers, with investors now being cautious, as they await the release of the initial jobless claims data and the Fed chair Powell’s speech. Overall, the average yield settled at 8.17%.

Equities

The domestic equities market continued to trend northwards, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.18% day-on-day to close at 48,223.86pts, while market year-to-date return extended to +12.89%. This was largely supported by buy interest in Custodian Investment Plc (+1.54%), Zenith Bank Plc (+1.25%), and Nigerian Breweries Plc (+0.31%).

The NGX Oil and Gas, Banking, Consumer Goods and Industrial Goods Indices gained 1.61%, 0.51%, 0.19% and 0.06% respectively, day-on-day.

Custodian Investment Plc led the volume chart with ca 38.70 million units while Nigerian Breweries Plc topped the value charts with ca ₦733.01 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦419.50/US$1.00 from ₦418.33/US$1.00, printed the previous day.

Commodities

Global oil prices recovered from previous session’s losses, on investors’ concern over tighter supplies from Russia as the Organization of Petroleum Exporting Countries (OPEC+) produced less than its March target of 1.45 million barrels per day. Thus, Brent Crude Oil price gained ca 2.38% day-on-day to settle at US$109.29pb, while WTI also gained ca 2.65% day-on-day to settle at US$104.76pb as at report time. Spot Gold fell ca 0.48% day-on-day to close at US$1,946.20 per ounce as at report time.

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