FIXED INCOME MARKET
Interbank system liquidity remained in the negative territory, with an opening balance of ca -₦169.46 billion, slightly better than Friday’s opening balance of ca -₦276.90 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) held steady at 14.00%.
The NTB secondary market opened the week on a muted note, with little to no action recorded across the curve, as most market players stayed on the sidelines ahead of the MPC decision tomorrow. Overall, the average rate stayed flat day-on-day, to close at 6.95%.
The FGN bonds market endured a calm session as well, with players’ attention swayed to the FGN bond auction. In short, offers were recorded across 2025s and 2042s at 10.30% and 13.20% respectively, but bids were absent. Overall, the average yield was unchanged day-on-day to settle at 11.79%.
Bullish sentiment dominated the Eurobonds’ space today, with prices appreciating on average by c.2.5pts, following renewed market interest and short coverings from the bearish overreaction to US CPI data released last week. Overall, the average yield across the Nigerian sovereign curve settled at 13.40%.
The domestic bourse started the week with a bullish performance, due to gains recorded in stocks such as Seplat Energy Plc (+10.00%) and Guaranty Trust Holding Company Plc (+1.91%), respectively. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.20% day-on-day to close at 52,319.94pts, while year-to-date returns extended to ca +22.48%.
The NGX Oil & Gas Index gained ca 4.02% while NGX Consumer Goods and Banking indices lost ca 0.64% and 0.04%, day-on-day, respectively. The NGX Industrial Index closed flat.
United Bank for Africa Plc led the volume chart with ca 12.93 million units while Seplat Energy Plc topped the value charts with ca ₦1.33 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦429.13/US$1.00 from ₦430.33/US$1.00, recorded on Friday.
Global Oil prices continued to rise, supported by an easing dollar and tight supplies that outweighed concerns about recession and the possibility of widespread Covid-19 lockdowns in China, which could affect fuel demand. Brent Crude Oil price gained ca 4.35% day-on-day to settle at US$105.56pb, while WTI rose ca 4.08% day-on-day to settle at US$101.57pb as at report time. Spot Gold gained ca 0.26% day-on-day to close at US$1,708.00per ounce as at report time.