FIXED INCOME MARKET
Interbank system liquidity opened with a balance of ₦58.10 billion, lower than the previous day’s opening balance of ca ₦193.97 billion. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 8.17% and 8.75% from 10.67% and 11.25%, recorded yesterday.
The NTB market was bereft of major activity, as market participants stayed on the sidelines ahead of tomorrow’s NTB auction. Nonetheless, few trades were executed on 7 June, 25 August, and 30 Mar papers at 3.15%, 3.30% and 4.30% respectively. Overall, the average rate stayed relatively flat across the curve at 3.63%.
Slight buyside activity ensued in the FGN bonds secondary market today, following yesterday’s Primary Market auction (PMA). Demand was seen on 2042 and 2050 maturities around 12.85% and 12.90% respectively, while mixed interest was seen on 2025s, 2035s and 2036s. Thus, the average yield dipped ca 6bps, day-on-day to settle at 11.15%.
Mixed trading sentiments dominated the Eurobond space, with buyside activity witnessed on Ghana papers amid announcement from Ghana Revenue Authority that the e-levy implementation will take effect from May 1, while late sell side action was seen on the Nigerian curve amid oil price volatility due to China’s worsening covid-19 status. Overall, the average yield settled at 8.59%.
The domestic equities market closed the day in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.05% day-on-day to close at 48,568.57pts, while year-to-date returns extended gains to ca +13.70%. Buy interest was observed in stocks like Nigerian Breweries Plc (+8.41%), Seplat Energy Plc (+6.80%), and Presco Plc (+1.54%).
The NGX Banking index lost ca 1.39% while the Oil and Gas, Consumer Goods, and Industrial Indices gained 3.35%, 1.10%, and 0.03% day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 123.82 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦2.72 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦418.50/US$1.00 from ₦417.30/US$1.00, printed the previous day.
Global oil prices slightly recovered today, after dipping sharply on prior sessions, on concerns that China’s Covid-19 lockdowns would affect crude demand. Brent Crude Oil price gained ca 1.68% day-on-day to settle at US$104.04pb, while WTI also rose ca 1.90% day-on-day to settle at US$100.43pb as at report time. Spot Gold gained ca 0.35% day-on-day to close at US$1,902.70 per ounce as at report time.