FIXED INCOME MARKET
Money Markets

Interbank system liquidity improved today, opening with a credit balance of ₦336.12 billion, compared to yesterday’s balance of ca ₦165.47 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 4.67% and 5.00% from 5.83% and 6.33%, respectively.

Treasury Bills

The NTB market saw buyside interest on CBN Special bills ( June, July and August), Jan and Feb NTBs at 2.70%, 4.35% and 4.40% respectively, while long-dated papers were generally offered at 4.65%.  Thus, the average rate dipped ca 3bps, day-on-day to settle at 3.66%.

Bonds

The FGN bonds secondary market endured a mixed to bullish theme, with buy interests on 2026s, 2027s, 2029s, 2032s, 2042s and 2050s while offers were mostly witnessed on 2025s and 2028s. Consequently, the average rate dipped by 5bps, day-on-day to settle at 11.60%.

Eurobonds

The SSA opened slightly firm this morning after closing 2 points lower at yesterday’s session, as investors continue to shed riskier assets on fears of rising interest rates. Nigeria and other SSA papers became attractive at today’s early session, with some investors cherry-picking the high-yielding papers, however, this was short-lived as focus shifted to the US CPI report for April 2022. Overall, the average yield settled at 11.29%.

Equities

The domestic bourse saw slight sell pressures across stocks like MTN Nigeria Communications Plc (-3.61%), Nigerian Breweries Plc (-2.53%), and Zenith Bank Plc (-0.21%), respectively as the bears emerged to take profits on their holdings. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.19% day-on-day to settle at 51,805.41pts, while year-to-date return reduced to +21.28%.

The NGX Banking Index lost ca 0.06% while the NGX Oil & Gas, Consumer Goods,  and Industrial Goods indices gained ca 0.97%, 0.78%, and 0.06% day-on-day, respectively.

Guaranty Trust Holding Company Plc led both the volume and value charts with ca 51.96 million units, traded at 1.23 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦418.25/US$1.00 from ₦419.00/US$1.00, the previous day.

Commodities

Global oil prices extended losses, as investors fled riskier assets due to concerns about rising interest rates and their impact on economic growth and global demand. Brent Crude Oil price dipped ca 2.33% day-on-day to settle at US$103.47pb, while WTI also lost ca 2.33% day-on-day to settle at US$100.69pb as at report time. Spot Gold dipped ca 0.85% day-on-day to close at US$1,842.50 per ounce as at report time.

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