FIXED INCOME MARKET
Interbank system liquidity opened the week with a deficit balance of ca -₦4.99 billion, higher than Friday’s opening balance of ca -₦445.44 billion, due to FAAC inflows. Thus, the Overnight Policy Rate (OPR) declined to 13.75% from 14.00% recorded in the previous session, while the Overnight Rate (O/N) remained unchanged at 14.00%.
The NTB market traded on a muted note, albeit with improved offers recorded on 8 June 2022 papers at 6.05% levels. Thus, the average rates remained unchanged, day-on-day to 4.77%.
The FGN bonds secondary market witnessed a mixed to bearish bias, with major interests seen in 2025s, 2035s, 2036s, and 2042s at 10.05%, 12.50%, 12.55%, and 13.15% respectively. Overall, the average yield inched up marginally by 3bps day-on-day to settle at 11.52%, amid low traded volumes.
The Eurobond space traded weak sentiments, with mild sell-offs observed across the SSA and other African markets, as investors continue to position ahead of a possible 75bps rate hike at next month’s FOMC meeting. Overall, the average yield across the Nigerian sovereign curve settled at 12.27%.
The domestic bourse opened the week on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.50% day-on-day to close at 51,962.85pts, while year-to-date returns extended to +21.65%. Buying interests were observed in stocks like Okomu Oil Palm Plc (+8.53%), MTN Nigeria Communications Plc (+2.13%), and Zenith Bank Plc (+0.23%), respectively.
The NGX Banking and Oil & Gas indices gained ca 0.51% and 0.12% while NGX Consumer Goods index lost ca 0.56%, day-on-day, respectively. The NGX Industrial Index closed flat.
Livingtrust Mortgage Bank Plc topped the volume chart with ca 65.66 million units, while Seplat Energy Plc led the value chart with ca 414.97 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦421.00/US$1.00 from ₦420.13/US$1.00, recorded on Friday.
Global oil prices edged higher today, as investors wait for the outcome of the 48th G7 summit, which began on Sunday, as well as any measures against Russian oil and gas exports that might heighten the risk of even tighter supplies. Brent Crude Oil price gained ca 1.33% day-on-day to settle at US$114.62pb, while WTI also grew ca 1.51% day-on-day to settle at US$109.25pb as at report time. Spot Gold dipped ca 0.20% day-on-day to close at US$1,826.60 per ounce as at report time.