FIXED INCOME MARKET
Opening system liquidity improved today with a credit balance of ₦537.94 billion, compared to yesterday’s opening figure of c.₦463.39 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rate declined to 6.00% and 6.17% respectively from 6.33% and 7.00% recorded at yesterday’s session.
The Treasury Bills secondary market traded mixed sentiments, as demand was seen on 8 Jul 2022 and 25 May 2023 Bills, while Sept and Oct NTBs witnessed some sell interests. At the close of the session, average rate inched up marginally by c.2bps to settle at 3.91%.
The FGN Bonds secondary market reflected sideways trading on 2026s and 2027s, while activity on the mid to long dated papers remained muted. Consequently, average rate stayed relatively flat at 11.62%, at the close of the trading session
Due to the 2-day bank holiday in the UK (Today and Tomorrow), the Eurobond market was largely inactive across the SSA, North and East African markets. Activity is expected to resume fully on Monday, June 6, 2022.
The equities market continued to trade on a negative note, as the ASI Index declined by 0.25% day-on-day, closing at 52,840.21pts. Sell side activity on stocks like ZENITH (-1.92%) and Nigeria Breweries(- 4.65%) were the major drags to performance while the index slid to +23.70% YTD.
The NGX Consumer Goods, Banking and Oil & Gas Indices all lost c.1.29%, 0.97% and 0.07% respectively while the NGX Industrial goods index remained unchanged day-on-day. FBN Holdings led the volume and value charts with c.74.66 million units and ₦ 836.14 million worth of trades respectively.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate closed flat at ₦419.00/US$1.00, recorded at the previous session.
OPEC and its oil-producing allies agreed to hike output in July and August by a larger-than-expected amount as Russia’s invasion of Ukraine wreaks havoc on global energy markets. Overall, Brent Crude Oil price gained c.0.67% day-on-day to settle at US$117.07pb, as the WTI also rose c.0.85% day-on-day to settle at US$116.39pb as at report time. Spot Gold rose by c.1.17% day-on-day to close at US$1,870.70per ounce as at report time.