FIXED INCOME MARKET
Interbank system liquidity opened with a deficit balance of ₦445.44 billion, significantly lower than yesterday’s opening of ca ₦335.64 billion short. In addition, the CBN retail FX auction which held today, ensured Open Buy Back (OBB) and Overnight (ON) rates stayed elevated to close the week at 14.00% levels.
The NTB market closed the week on a bearish note, as banks sold off short-dated papers to create liquidity. Most of the activity was skewed to Oct and Nov 2022 papers, albeit late offers were seen on 8 June bill at 6.05%. Overall, the average rate inched up by c.9bps,day-on-day to 4.54%.
The FGN bonds market traded on a quiet note, although there were few interests recorded on 2042s and 2049s at 13.10% and 13.03% levels, respectively. Overall, the average yield stayed relatively stable, to settle at 11.49%.
The Eurobonds market ended the week slightly firmer with renewed buying interests seen across selected papers in Nigeria, Ghana, and Angola sovereigns. Overall, the average yield across the Nigerian sovereign curve settled at 12.48%.
The domestic bourse closed the last trading day of the week in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.17% day-on-day to close at 51,705.61pts, while year-to-date returns extended to +21.04%. This was largely due to buy interests in stocks like MTN Nigeria Communications Plc (+0.26%) and Zenith Bank Plc (+0.23%), respectively.
The NGX Banking Index gained ca 0.06% while NGX Consumer Goods and Oil & Gas indices lost ca 0.56% and 0.46%, day-on-day, respectively. The NGX Industrial Index closed flat.
Oando Plc led the volume chart with ca 19.32 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦239.09 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦420.13/US$1.00 from ₦420.17/US$1.00, recorded the previous day.
Global crude oil prices recovered today, bolstered by tight supplies amid investor concerns that rising interest rates could push the world economy into recession. Brent Crude Oil price gained ca 2.95% day-on-day to settle at US$113.30pb, while WTI also grew ca 3.27% day-on-day to settle at US$107.70pb as at report time. Spot Gold gained ca 0.09% day-on-day to close at US$1,831.60 per ounce as at report time.