FIXED INCOME MARKET
Interbank system liquidity opened the week positive with a balance of ca ₦91.44 billion, albeit significantly lower than Friday’s opening balance of ca ₦187.75 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rate closed higher at 15.75% and 16.25% respectively from 13.63% and 14.13% recorded on Friday.
The NTB secondary market endured a quiet theme, with mild selling interest recorded on 29 May CBN Special bill at c.6.50% levels. Overall, the average mid-rate closed relatively flat, day-on-day, to settle at 5.00%.
The FGN bonds market was largely muted, as participants focused on the bonds auction where c.N225bn was offered across 3 maturities. On the side, few demands were observed on 2037s, 2049s and 2050s but offers were scarce. Thus, the average mid yield remained stable, day-on-day to settle at 14.19%.
It was a mixed session in the Eurobond space with sideways interests recorded across the SSAs and MENAs, as investors traded cautiously ahead of major central banks’ meetings this week and the US CPI readings tomorrow. Overall, the average yield across the Nigerian sovereign curve closed at 11.37%.
The domestic bourse sustained positive sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.04% day-on-day to close at 48,899.08pts, while year-to-date returns extended to +14.47%. This performance was buoyed by interests in stocks like First Bank of Nigeria Holdings Plc (+1.85%) and Zenith Bank Plc (+1.58%), respectively.
The NGX Banking and Industrial indices gained ca 0.47% and 0.04% day-on-day, respectively. The NGX Oil & Gas and Consumer Goods Indices closed flat.
Access Holdings Plc topped both the volume and value charts with ca 120.98 million units traded at ca ₦1.03 billion.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to settle at ₦446.00/US$1.00 from ₦446.50/US$1.00, recorded on Friday.
Global oil prices leveled as a weaker global economy outweighed supply concerns caused by the shutdown of a key pipeline serving the United States alongside Russian output cuts. Brent Crude Oil price gained ca 3.11% day-on-day to settle at US$78.47pb, while WTI gained ca 4.03% day-on-day to settle at US$73.88pb as at report time. Spot Gold lost ca 0.83% day-on-day to close at US$1,795.60 per ounce as of report time.