FIXED INCOME MARKET
Interbank system liquidity improved, opening with a balance of ca ₦75.24 billion, compared to ₦19.68 billion recorded at the close of the previous week. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rate closed lower at 12.83% and 13.67% respectively, from 13.67% and 14.00% recorded on Friday.
The NTB secondary market opened the trading session with mixed sentiments, as we witnessed demand on the CBN’s Special Bills while offers were seen on the long tenor Bills. Overall, the average rate increased slightly by c.3bps, closing at 3.78%.
The FGN Bonds secondary market traded on a bullish note, as market participants continued to deploy excess liquidity from FAAC inflows to attractive maturities. Activity was seen majorly on 2026s, 2027s, 2036s, 2042s and 2050s papers. Consequently, the average yield declined by ca 8bps across the curve, to settle at 11.63%.
The Eurobond market opened firmer today, with global risk-on sentiment still evident in market activity. The Nigeria and Angola curve enjoyed some buyside interest, while there were mild sell-offs witnessed in Ghana and some Egypt papers. Overall, the average yield settled at 10.44%.
The domestic bourse opened trading activities on a negative note, with the Nigerian Stock Exchange All Share Index (NGX ASI) losing 0.58% day-on-day, to close at 53,772.14pts, on the back of sell pressure on bellwethers like MTN Nigeria Communications Plc (-2.95%), Guaranty Trust Holding Company Plc (-0.43%), and Zenith Bank Plc (-0.21%), respectively. Consequently, the market’s year-to-date return currently stands at ca +25.88%.
The NGX Oil & Gas Index gained ca 0.07% while the NGX Banking, Consumer Goods, and Industrial Indices lost 0.26%, 0.11% and 0.11% day-on-day, respectively. Union Bank Nigeria Plc led both the volume and value charts with ca 27.34 billion units, traded at 191.36 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦420.25/US$1.00 from ₦419.50/US$1.00, recorded on Friday.
Global crude oil prices rose today, as traders waited to see if the European Union would reach an agreement on banning Russian Oil. Brent Crude Oil price gained ca 1.21% day-on-day to settle at US$120.88pb, while WTI also rose ca 1.05% day-on-day to settle at US$116.30pb as at report time. Spot Gold gained ca 0.18% day-on-day to close at US$1,854.60 per ounce as at report time.