FIXED INCOME MARKETS
System liquidity improved slightly to a credit balance of c.₦ 371.23 billion compared to the previous day’s opening balance of c.₦ 258.06 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 9.50% and 9.83% respectively from 9.67% and 10.00% the previous day.
The NTB market traded bullish today, with demand recorded across the curve. Short dated papers traded around c.1.30% levels, while mid and long dated papers traded around 3.20% and 5.50% levels respectively. Overall, average mid-rate closed c.3bps lower at 3.92%.
The FGN bonds market reacted to the release of Q1’2023 FGN bond issuance calendar with significantly higher bids (c.60bps) compared to yesterday’s close. The auction papers (2028s, 2032s, 2037s and 2049s) observed much higher bids and offers compared to surrounding tenors, as players start to take position ahead of the expected supply.
However, by close of market, bids moderated across the curve, as the knee-jerk reaction cooled off. Thus, the average mid-yield closed c.25bps higher at 13.74%.
The Eurobond market traded mixed sentiments, with lower prices recorded earlier today, as China’s growth data halted the bull run recorded over the past days. The Nigerian, Ghana and Angolan papers all traded lower earlier in the day, but demand gradually filtered into the market during the afternoon session. Overall, the average yield across the Nigerian sovereign curve closed at 10.24%.
The domestic bourse closed the day with bullish sentiments, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained c.0.67% day-on-day to close at 52,701.31 points while market year-to-date return was recorded at c.2.83%. Buying interests on stocks like AIRTELAFRI (+3.23%) and WAPCO (+1.64%) drove the index upwards.
The NGX Banking, Oil & Gas, Consumer goods and Industrial Indices all gained c. 0.19%, 0.19%, 0.53% and 0.08% respectively at the close of the session. STERLNBANK led the volume with c.76.74 million units while GEREGU led the value charts with c.₦ 1.43 billion worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained unchanged at ₦ 461.50/US$1.00 from the close of the previous day.
Oil prices rose to their highest in two weeks today after China posted weak but expectation-beating annual economic growth data, and on hopes that a recent shift in its COVID-19 policy will boost fuel demand. Brent Crude Oil price gained c.1.94% day-on-day to settle at US$86.10pb, while WTI gained c.0.89% day-on-day to settle at US$80.62pb as at the time of this report. Spot Gold lost c.0.46% day-on-day to close at US$1,912.80 per ounce as of report time.