FIXED INCOME MARKET
Interbank system liquidity opened lower with a balance of c.
₦368.47 billion, compared to yesterday’s balance of c.₦ 759.02 billion. However, the Overnight Policy Rate (OPR) and Overnight Rate(O/N) declined to 7.00% and 7.50% respectively from 8.00% and 8.67% reported at yesterday’s session.
It was a tepid day in the Treasury bills market, with little to no action seen across the curve amid CBN’s announcement of the OMO auction. Thus, average rate stayed relatively flat at 7.55%.
The FGN bonds market started the month with mild buyside interest witnessed on 2050s while few offers were seen on 2042s at 14.00% levels. However, with very few trades executed, the average yield closed marginally lower by 2bps to 12.84% at the close of the session.
It was a mixed start to the month in the African Eurobonds space, with selling interest observed across Nigeria and Angola Eurobond papers, while few demand were recorded across the belly to long end of the Ghana curve, as some investors take advantage of the cheapness of the curve compared to other African markets. Overall, the average yield closed higher at 12.55%.
The domestic bourse continued to trade with bullish sentiment as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.11% day-on-day, closing at 49,889.88pts while year-to-date returns improved to +16.79%.Buying sentiments on stocks such as Access Corp (+2.41%) and UBA (+1.39%) drove the performance.
The NGX Consumer Goods, Industrial and Oil & Gas Index all gained by c.0.09%, 0.99% and 0.32% respectively while the NGX Banking Index lost c.0.43%. Sterling Bank led the volume chart with c.159.82million units while GTCO topped the value charts with c.₦ 680.45 million worth of trades
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦430.00/US$1.00 from ₦429.44/US$1.00 recorded on at the previous day.
Oil prices tumbled today as new Covid-19 lockdown measures in China added to worries that high inflation and interest rate hikes are denting fuel demand. Brent Crude Oil price lost c.2.32% day-on-day to settle at US$93.42pb, as the WTI also lost c2.41% day-on-day to settle at US$87.35pb as at report time. Spot Gold dipped by c.1.52% day-on-day to close at US$1,699.30 per ounce as of report time.