FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity opened with a balance of ₦591.31 billion, compared to previous day’s opening balance of ca ₦309.08billion. Consequently, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower, to settle at 4.75% and 5.00% respectively from 4.83% and 5.08%, recorded yesterday.

Treasury Bills                                                                  

The NTB secondary market was bullish today, as investors anticipate CRR debits. Interest was concentrated at the short to mid-end of the curve, particularly the May to October papers at 2.30% and 3.20% levels. Thus average rate lost ca 5bps day-on-day, at 3.65%.

Bonds

The FGN bonds market sustained its mixed tone, with healthy demand seen on 2026s, 2042s and 2050s, while offers were predominantly seen on 2032s and 2035s. Overall, average rate dipped by 3bps.  Overall, average yield reduced by ca 3bps at 11.64%.

Eurobonds

Following yesterday’s FOMC meeting, where the US Feds raised rates by the expected 50bps and dampened expectations of a 75bp hike in subsequent meetings, the Eurobond market opened with renewed risk-on sentiment, at 1 – 1.5ppt up at the long end of most sovereign names. There were decent flows across the Nigeria and Angola curves, as well as the return of onshore demand to the short-end of the Ghana curve ( 26s and Mar 27s). In North Africa, after a pretty muted day yesterday, the Egypt curve opened up c.1 – 1.25ppts up today, with buyers of risk across the curve, particularly in the long end.

Equities

The domestic equities market continued to trend northwards, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 1.42% day-on-day to close at 50,835.95pts, while market year-to-date return extended to +19.01%. This was largely supported by buy interests in Guinness Plc (+10.00%), MTN Nigeria Communications Plc (+6.06%) and Airtel Africa Plc (+1.01%).

The NGX Consumer Goods and Industrial Goods indices gained ca 2.36% and 0.12% respectively, while the NGX Oil & Gas and Banking indices lost ca 0.51% and 0.08%, day-on-day. First City Monument Bank Plc led the volume chart with ca 138.52 million units while Nestle Nigeria Plc topped the value charts with ca ₦1.84 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦419.00/US$1.00 from ₦418.00/US$1.00, the previous day.

Commodities

Global crude oil prices extended gains on sustained concern of a drop in global crude oil supply, following reports that the European Union plans to phase out imports of Russian Oil. Brent Crude Oil price gained ca 0.84% day-on-day to settle at US$111.00pb, while WTI also rose ca 0.44% day-on-day to settle at US$108.27pb as at report time. Spot Gold gained ca 0.60% day-on-day to close at US$1,879.10 per ounce as at report time.

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