FIXED INCOME MARKET
Interbank system liquidity improved today, opening with a balance of ₦309.08 billion, compared to Friday’s opening deficit of ca ₦18.71 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower, to settle at 4.83% and 5.08% respectively from 12.25% and 12.50%, recorded on Friday.
The NTB secondary market had a calm session today, with offers mostly seen on April 2023 papers at 4.65% levels but bids were scarce. Thus, average rate remained unchanged day-on-day at 3.63%.
Mixed sentiments dominated the bonds secondary market, as demand was seen on the 2026, 2034 and 2050 maturities, while offers were seen on the 2032, 2035 and 2036 maturities. Overall, average yield was relatively flat at 11.62%, as executed trades were few and far between.
The SSA Eurobond Eurobond space was largely bearish at the early hours of today’s session, as the market awaits the US Feds’ decision on benchmark interest rate. However, the SSA sovereign curve gradually witnessed some lifts in Ghana, Angola and some selected Nigerian papers, as investors tried to cherry-pick the relatively attractive papers given the high yield levels. Overall, the average yield settled at 10.07%.
The domestic equities market opened the month with positive performance, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.98% day-on-day to close at 50,126.41pts, while market year-to-date return extended to +17.35%. This was largely supported by buy interests in Nigerian Breweries Plc (+9.98%), Presco Plc (+9.97%), and Stanbic IBTC Holdings Plc (+2.68%).
The NGX Consumer Goods and Industrial Goods indices gained ca 3.30% and 2.97% respectively, while the NGX Oil & Gas and Banking indices lost ca 1.37% and 0.98%, day-on-day.
Union Bank of Nigeria Plc topped both the volume and value charts with ca 263.65 million units, traded at 1.66 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦418.00/US$1.00 from ₦419.00/US$1.00, the previous day.
Global crude oil prices rose following reports that the world’s largest oil trading bloc, European Union plans to phase out imports of Russian Oil. Brent Crude Oil price gained ca 5.06% day-on-day to settle at US$110.30pb, while WTI also rose ca 5.40% day-on-day to settle at US$107.95pb as at report time. Spot Gold lost ca 0.34% day-on-day to close at US$1,864.00 per ounce as at report time.