FIXED INCOME MARKET
The Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 5.00% and 5.67% from 6.50% and 7.17% recorded the previous day, indicating an improvement in banking system liquidity.
Activity in the NTB secondary market was subdued at the close of the week, with mild interest seen on CBN special bills and mild sell-offs on mid to long dated papers. Consequently, the average rate stayed relatively flat across the curve at 3.65%.
The FGN bonds secondary market also observed a calm session, as investors stayed on the sidelines ahead of next week’s FGN bonds auction. However, few trades were executed on 2025s, 2026s, 2027s, 2035s, and 2037. Overall, average yield stayed unchanged at 11.14%.
The Eurobond market traded on a bearish note, as Fed Chair Powell’s hawkish tilt sees traders ramping bets on Fed hikes. The SSAs sovereign Eurobonds experienced a sell-off across the curve, with Nigeria seeing the most action, buoyed by her Finance Minister’s comment of an additional $950mm Eurobonds to be sold as early as May 2022. Overall, the average yield settled at 8.36%.
The domestic equities market sustained its positive performance to close the week, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.49% day-on-day to close at 48,459.65pts, while market year-to-date return extended to +13.44%. This was largely supported by buy interest in Zenith Bank Plc (+4.12%), Nigerian Breweries (+1.14%) and Guaranty Trust Holding Company Plc (+0.41%).
The NGX, Banking, Oil and Gas, Consumer Goods and Industrial Goods Indices gained 2.93%, 1.66%, 0.76% and 0.62% respectively, day-on-day.
Fidelity Bank Plc led the volume chart with ca 47.24 million units while Zenith Bank Plc topped the value charts with ca ₦990.33 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦418.33/US$1.00 from ₦419.50/US$1.00, printed the previous day.
Global oil prices trended to negative territory on growing concerns of a weaker global economic growth, as the International Monetary Fund (IMF) cut its global economic growth forecast to 3.6% from 3.8%. Brent Crude Oil price lost ca 1.84% day-on-day to settle at US$106.34pb, while WTI also lost ca 1.69% day-on-day to settle at US$102.03pb as at report time. Spot Gold fell ca 0.65% day-on-day to close at US$1,935.50 per ounce as at report time.