FIXED INCOME MARKET
Interbank system liquidity opened significantly lower at ₦25.50 billion long, compared to ₦178.50 billion recorded yesterday. Consequently, Overnight Policy Rate (OPR) and Overnight (ON) rate rose to 6.75% and 7.50% respectively, from 6.33% and 7.08% recorded at the close of yesterday’s session.
The NTB secondary market traded sideways, with mild demand observed on long-dated papers at 5.90% levels while offers on Sep 2022 and Nov 2022 Bills hovered around 3.30% to 3.60% levels. Overall, average rate closed flat day-on-day at 3.88%.
The FGN Bonds secondary market was bullish along the short end of the curve, with bids seen on 2025s and 2026s at 10.10% and 10.40% respectively, while the mid to long dated papers endured a mixed theme with slightly improved offers. Overall, average yield declined by c.7bps to close at 11.46%.
The Eurobond space opened softer today across the SSA and North Africa markets, following yesterday’s lackluster session, due to global economic fragility. Thus, average rate inched up by c.8bps to close at 11.47%. All eyes will be on the US. Inflation data to be released later this week.
The equities market extended gains from prior trading session, as the ASI Index inched up by c.0.35% from the previous session to close at 53,270.88pts while year-to-date returns improved to 24.71%. The positive performance was driven by buying interest seen on bellwethers like MTN Nigeria (+2.35%) and United Bank of Africa (+0.64%).
The NGX Industrial goods and Banking Indices both gained c.0.04% and 0.29% respectively, the NGX Consumer Goods Index lost c. 0.26% while the NGX Oil & Gas Index remained unchanged from the previous session. Transnational Corporation of Nigeria (TRANSCORP) led the volume chart with c.30.43 million units while NGX Nigeria led the value charts with c.₦ 459.96 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate continued to decline in value to ₦420.75/US $1.00 from ₦420.25/US$1.00, recorded at the previous session.
Oil prices were relatively stable at today’s trading session as the market balanced risk sentiment with supply concerns and the prospect of higher demand as China relaxes its Covid curbs. Overall, Brent Crude Oil price gained c.0.99% to settle at US$120.69pb, as the WTI also rose c.1.08% from the previous session to settle at US$119.76pb as at report time. Spot Gold gained c.0.58% to close at US$1,854.40 per ounce as at report time.