FIXED INCOME MARKET
The Overnight Policy Rate (OPR) and Overnight (ON) rate trended higher due to the bi-weekly retail FX auction, to settle at 12.25% and 12.50% from 11.00% and 11.75%, recorded the previous day.
The NTB market traded with mixed sentiments today, with buyside interest seen on short to mid dated papers, while offers were mostly observed on 27 Apr 2023 at 4.65%. However, due to the scanty trades executed across board, the average rate stayed relatively flat day-on-day at 3.63%.
The FGN bonds market ended the month on a lull, with little to no activity throughout the curve as the festive mood sets in. Thus, average yield remained flattish day-on-day, to settle at 11.53%.
The SSA Eurobond markets opened fairly positive amid strong US numbers, after two days of heavy selloffs. Nonetheless, trading was mostly sideways today, with lifts on selected papers in Nigeria and Angola sovereign papers, while some sell side activity was seen on the mid to long dated Ghana papers, as surging inflation continues to derail Ghana’s 2022 growth target. Overall, the average yield settled at 9.65%.
The domestic bourse ended the month of April with year-to-date returns settling at ca. 16.21%, as earnings releases and dividend payments drove buy sentiments across board. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 5.69% month-on-month to settle at 49,638.94pts. Bellwethers like Airtel Africa Plc (+5.00%), Nestle Nigeria Plc (+3.23%), Dangote Cement Plc (+2.31%), MTN Nigeria Communications Plc (+0.23%), and Guaranty Trust Holding Company Plc (+1.65%), respectively rallied at today’s trading session.
The NGX Consumer Goods, Industrial, Oil & Gas, and Banking indices gained ca 1.31%, 1.20%, 0.68% and 0.17% day-on-day, respectively.
Honeywell Flour Mill Plc led both the volume and value charts with ca 6.10 billion units, traded at 25.61 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦419.00/US$1.00 from ₦418.50/US$1.00, printed the previous day.
Concerns over Russian supply disruption pushed up global oil prices, which were bolstered by the likelihood that Germany will join other European Union member states in imposing a Russian oil embargo. Brent Crude Oil price gained ca 1.95% day-on-day to settle at US$106.69pb, while WTI also rose ca 1.22% day-on-day to settle at US$106.66pb as at report time. Spot Gold gained ca 1.13% day-on-day to close at US$1,912.60 per ounce as at report time.