FIXED INCOME MARKET
The Overnight Policy Rate (OPR) and Overnight (ON) rates trended significantly higher to settle at 10.67% and 11.25% from 5.00% and 5.67%, recorded on Friday.
Sentiments in the NTB secondary market were subdued today, with bids and offers seen on the 13 April NTB paper at 4.45% and 4.20% levels respectively, while sell interest was observed on January and February papers. Overall, the average rate stayed relatively flat across the curve at 3.65%.
Activity in the FGN bonds market was lull, with most investors staying on sidelines, as they await the outcome of the bond auction held today. However, weak interest was seen on 2027s and 2042s at 11.15% and 13.10% respectively, but little to no trade was executed. Thus, average yield remained unchanged, day-on-day to settle at 11.45%.
Price levels across Nigeria, Ghana, Angola, and other African sovereign Eurobonds papers slumped on an average of ca 2.5 basis points as concerns about China’s COVID-19 situation worsened, with the crippling demand causing oil prices to drop as well. Lack of investors’ confidence was seen across the curve evident with the selloffs on their holdings to switch to safe-haven assets. Overall, the average yield settled at 8.64%.
The domestic bourse recorded a positive performance at the start of the week, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.17% day-on-day to close at 48,543.36pts, while market year-to-date return extended to +13.64%. Q1 earnings releases continue to spur investors’ confidence in stocks like Nigerian Breweries (+9.86%), Stanbic IBTC Plc (+6.32%) , and Guaranty Trust Holding Company Plc (+1.65%), respectively.
The NGX Industrial index lost ca 1.10% while the Consumer Goods, Oil and Gas, and Banking Indices gained 2.45%, 1.44%, and 0.34% day-on-day, respectively.
Zenith Bank Plc led both the volume and value charts with ca 35.84 million units, traded at 912.15 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦417.30/US$1.00 from ₦418.33/US$1.00, printed on Friday.
Global oil prices extended losses from last week’s decline as investors’ concerns weigh on the continued Covid-19 lockdowns in Shanghai and the likely possibility that an increase in U.S. interest rates would stall global growth and oil demand. Brent Crude Oil price lost ca 5.69% day-on-day to settle at US$100.56pb, while WTI also dipped ca 5.46% day-on-day to settle at US$95.51pb as at report time. Spot Gold fell ca 1.91% day-on-day to close at US$1,897.40 per ounce as at report time.