FIXED INCOME MARKET
Interbank system liquidity opened ca ₦159.92 billion short, lower than yesterday’s opening balance of ca-₦115.93 billion. Thus, the Overnight Policy Rate (OPR) trended higher to 15.00% from 14.50% recorded in the previous session, while the Overnight Rate (O/N) remained unchanged at 15.00%.
The NTB secondary market traded on a relatively quiet note, as most market participants focused on the NTB auction where c.N295bn was offered across the usual tenors. Nonetheless, mild interest was recorded on 16-Mar-2023 NTB and long end OMO bills, but executed volumes were few and far between. Overall, the average rate dipped by c.4bps day-on-day, to settle at 7.78%.
The FGN bonds market sustained its mixed to bullish theme, with few offers seen on the short end (2025s and 2027s) though bids were wide, while buying interest was recorded across 2032s, 2042s, 2049s, and 2050s, causing yields to decline on average by c.12bps. Consequently, the average yield settled at 13.07%.
The Eurobond space sustained its positive sentiment from yesterday’s rally, led by Angola, Egypt, and Nigeria Papers. The Local investors continue to cherry-pick the available supply, causing prices to appreciate by c.1.25pts on average. Overall, the average yield across the Nigerian sovereign curve settled at 11.71%.
The domestic bourse closed the day in positive territory, following buy interest in stocks such as Stanbic IBTC Holdings Plc (+8.93%) and Nestle Nigeria Plc (+0.23%). The Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.25% day-on-day to settle at 48,675.33pts, while year-to-date return extended to +13.95%.
The NGX Banking, Industrial, Oil & Gas, and Consumer Goods Indices gained ca 0.56%, 0.47%, 0.16%, and 0.09%, day-on-day, respectively.
Access Holdings Plc led the volume chart with ca 27.90 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦725.24 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦431.00/US$1.00 from ₦430.67/US$1.00, recorded the previous day.
Global oil prices rose after Saudi Arabia suggested that OPEC might consider cutting output in response to tight liquidity and concerns about a global economic downturn. Brent Crude Oil price rose ca 0.59% day-on-day to settle at US$100.81pb, while WTI gained c.0.86% day-on-day to settle at US$94.55pb as at report time. Spot Gold rose c.0.40% day-on-day to close at US$1,768.20 per ounce as of report time.