FIXED INCOME MARKET
Interbank system liquidity opened with a negative balance of ca – ₦261.87 billion, lower than yesterday’s balance of ca -₦238.06 billion. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) remained at double-digit levels to settle at 16.17% and 16.33%, respectively.
The NTB secondary market reflected a mixed to bearish theme, with demand observed on 6 March 2023 CBN Special bills, while sideways interest was recorded on the 28 November 2022, 7 and 14 February 2023 papers, respectively. Overall, the average rate closed ca 5bps higher, day-on-day to settle at 9.41%.
The FGN bonds market witnessed demand on 2037s and 2042s, while mild selling interest was observed on 2032s and 2035s. Overall, the average yield held steady, day-on-day to settle at 14.25%.
With US stocks opening marginally lower today, trading in the Sub-Saharan African Eurobond space was weak, as most of the curves lost on average c.1.35pts. Overall, the average yield across the Nigerian sovereign curve settled at 14.47%.
The domestic bourse closed today’s trading on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.03% day-on-day to close at 44,332.21pts, while year-to-date returns extended to +3.78%.
The NGX Consumer Goods and Industrial Indices gained ca 0.20% and 0.09% while the NGX Banking & Oil & Gas Indices lost ca 0.82% and 0.39%, day-on-day, respectively.
Fidelity Bank Plc led the volume chart with ca 39.36 million units, while Airtel Africa Plc topped the value charts with ca ₦1.76 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦441.13/US$1.00 from ₦441.50/US$1.00, recorded the previous day.
Global oil prices rose due to tighter production quotas supported by OPEC+ cut and an anticipated European Union ban on Russian crude products, alongside China’s easing of COVID quarantine regulations, which will likely boost fuel demand. Brent Crude Oil price gained ca 1.53% day-on-day to settle at US$93.82pb, while WTI rose ca 2.07% day-on-day to settle at US$87.32pb as at report time. Spot Gold gained ca 0.91% day-on-day to close at US$1,649.10 per ounce as of report time.