FIXED INCOME MARKET
Money Markets
Interbank system liquidity opened the day with a deficit balance of ca -₦74.85 billion, lower than yesterday’s opening balance of ca ₦48.18 billion, due to funding provision for the NTB auction debit. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended higher to settle at 13.67% and 14.08% from 12.96% and 13.50%, recorded the previous day.
Treasury Bills
The NTB market endured a mixed to bearish theme, following yesterday’s NTB auction result. The offers were mostly seen on mid to long dated papers, while the newly issued 1-year paper had bids around 6.40% but offers were c.50bps apart. Thus, the average rate inched up 55bps day-on-day, closing at 3.78%.
Bonds
The FGN bonds market had an early bearish reaction to yesterday’s auction result, with improved offers seen on 2026s, 2028s, 2032s, 2035s, 2036s, 2042s, and 2050s, albeit with bid/ask spreads were too wide. However, as the market approached a close, bids moved to within c.10bps of offers, ensuring few trades were executed. Overall, the average yield rose ca 20bps, day-on-day, to settle at 11.53%.
Eurobonds
The SSA Eurobond market traded bullish, as the Federal Reserve minutes released yesterday appeared to be less hawkish than investors may have expected, putting markets at ease. As a result, we continued to see sustained demand for Sub-Saharan papers across Angola, Ghana, and Nigeria curves. Overall, the average yield settled at 11.22%.
Equities
The domestic bourse sustained its positive performance, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.06% day-on-day to close at 53,151.32pts, while year-to-date performance rose to +24.43%. This was largely supported by buy interests in bellwethers such as MTN Nigeria Communications Plc (+4.35%), Guaranty Trust Holding Company Plc (+2.68%), and Zenith Bank Plc (+1.06%), respectively.
The NGX Oil & Gas Index lost ca 0.30% while the NGX Banking, Consumer Goods, and Industrial Indices gained 1.22%, 0.93% and 0.42% day-on-day, respectively.
Transcorp Corporation of Nigeria Plc led the volume chart with ca 47.65 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.88 billion worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦418.88/US$1.00 from ₦418.00/US$1.00, recorded the previous day.
Commodities
Global crude oil prices extended gains on signs of tight supply, alongside the European Union (EU) conflicts with Hungary over plans to ban imports from Russia, the world’s second-largest crude supplier, following its invasion of Ukraine. Brent Crude Oil price gained ca 2.89% day-on-day to settle at US$117.32pb, while WTI also rose ca 3.76% day-on-day to settle at US$114.48pb as at report time. Spot Gold gained ca 0.87% day-on-day to close at US$1,847.70 per ounce as at report time.