FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened with a balance of ₦251.64 billion, lower than yesterday’s opening balance of ca ₦336.12 billion. Overall, liquidity levels remained robust with no significant funding needs. However, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 5.75% and 6.38% from 4.67% and 5.00%, respectively.

Treasury Bills

The NTB secondary market saw some activity today, with sustained demand for CBN SPEBs, and short to mid dated NTBs at 2.70% to 3.30% levels, despite the NTB auction scheduled today. Consequently, the average rate reduced by ca 2bps, day-on-day to settle at 3.66%.

Bonds

The FGN bonds secondary market sustained the bullish theme witnessed over the past few days, with buy-side interest on 2026s, 2029s, 2032s, and 2049s at 10.60%, 11.50%, 12.46%, and 12.85% respectively, although offers were c.15bps apart from the bid levels. Overall, the average rate dipped by 6bps, day-on-day to settle at 11.58%.

Eurobonds

The SSA market opened firmer today, with renewed buy side interest across the curve and expectation that the US CPI numbers will print lower c.8.10%. However, with the US CPI officially at 8.30% (higher than market expectation), despite being lower than Mar’s 8.50%, the market retraced its earlier bullish theme with a mild selloff seen across Nigeria and Ghana. Overall, the average yield settled at 11.61%.

Equities

The domestic bourse overturned some of the previous day’s losses, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.99% day-on-day, to close at 52,838.45pts, while the market’s year-to-date returns extended to ca 23.70%. This performance leaned heavily to buy interests in bellwethers like MTN Nigeria Communications Plc (+9.21%), Dangote Cement Plc (+2.60%), and Guaranty Trust Holding Company (+0.84%), respectively.

The NGX Consumer Goods, Industrial, Oil & Gas, and Banking indices gained ca 1.48%, 1.41%, 0.10%, and 0.03% day-on-day, respectively.

Jaiz Bank Plc led the volume chart with ca 40.44 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.29 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦418.75/US$1.00 from ₦418.25/US$1.00, the previous day.

Commodities

Global oil prices reverse the bearish trend, as the European Union seeks to secure support for a Russian oil embargo, escalating investors’ concerns about crude supplies. Brent Crude Oil price rose ca 5.26% day-on-day to settle at US$107.72pb, while WTI also gained ca 5.94% day-on-day to settle at US$105.63pb as at report time. Spot Gold gained ca 0.53% day-on-day to close at US$1,850.60 per ounce as at report time.

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