FIXED INCOME MARKET
Interbank system liquidity opened with a deficit of ca ₦235.78 billion today, compared to the previous day’s opening balance of ca ₦97.53billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 11.00% and 11.75% from 12.00% and 12.50%, recorded yesterday.
The NTB market was dominated by buy-side activity as investors sought to fill lost bids from yesterday’s auction. The newly issued 1-year paper drew the most traction at 4.65% to 4.70% levels, while mild demand was also seen on some Aug and Oct bills. Overall, the average rate dipped by 3bps, day-on-day to settle at 3.63%.
The FGN bonds secondary market endured another dull session today, as investors continue to demand sufficient premium on the available papers amid weak macro fundamentals. Thus, average yield stayed relatively flat day-on-day, to settle at 11.53%, due to lack of real market activity.
The SSA Eurobonds market sustained further sell-off on Nigeria and Angola papers, while few cherry-picking of relatively high yields were seen on Ghana papers. Overall, the average yield settled at 9.23%.
The domestic bourse observed bargain hunting on some stocks across the board, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.55% day-on-day to settle at 48,837.76pts, while year-to-date return extended to +14.33%. This performance leaned heavily on investors’ positive sentiments toward stocks like Seplat Energy Plc (+9.09%), Guinness Nigeria Plc (+5.14%), MTN Nigeria Communications Plc (+0.94%), and Access Holdings Plc (+0.51%), respectively.
The NGX Oil & Gas, Banking, Consumer Goods, and Industrial indices gained ca 5.17%, 0.86%, 0.67% and 0.03% day-on-day, respectively.
FCMB Group Plc led both the volume and value charts with ca 503.98 million units, traded at 1.76 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦418.50/US$1.00 from ₦419.33/US$1.00, printed the previous day.
Global crude oil prices steadily improved as investors considered tightening Russian supplies, as the country contends with Western sanctions and the possibility of a slowdown in China’s gasoline demand. Brent Crude Oil price gained ca 1.40% day-on-day to settle at US$106.79pb, while WTI also rose ca 1.99% day-on-day to settle at US$104.06pb as at report time. Spot Gold dipped ca 0.12% day-on-day to close at US$1,886.30 per ounce as at report time.