FIXED INCOME MARKETS
Money Markets
Opening system liquidity improved to c.₦566.5 billion compared to yesterday’s opening balance of c.₦ 456.9 billion. However, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) increased to 10.75% and 11.20% respectively from 10.50% and 10.81% recorded the previous day.
Treasury Bills
The market extended its bearish bias in today’s trading session, as sell interests heralded across the mid-to-long end tenors. The one-year paper was offered at c.3.00% while bids were c.50bps higher. Thus, the average mid-rate closed at c.3.40%.
Bonds
Market activity was driven mostly by sellers in today’s session. The on-the-run bonds were aggressively offered at the early trading hours, as successful buyers at the auction looked to crystalize profit. However, by close of market, there were mild buying interest across 2037s and 2049s with few trades executed at c.15.95% and 16.00% respectively. Overall, the average mid-yield closed marginally higher to settle at 13.70%.
Eurobonds
Ahead of the release of the U.S C.P.I data, market sentiment steered positively across the Nigeria, including the SSA and Egypt curves. However, following the release of US inflation numbers, where according to the Bureau of Labor Statistics, the January inflation increased by 6.4% (higher than estimate of 6.20%), implying a mild moderation, from 6.5% in December, market swayed into a relatively bearish theme, as the dollar gained while Eurobond papers experienced mild weakness amid expected future tightening measures by the US Feds.
Equities
The Nigerian domestic bourse closed on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.24% day-on-day to close at 54,496.31points while year-to-date return closed at c.6.33%. Buying activities on pacesetters like MTNN (+3.60%) WAPCO (+0.20%) and ACCESSCORP (+0.10%) drove the bullish theme.
The NGX Industrial Goods and Consumer Good Indices both appreciated in value by c. 0.04% and c. 0.41% respectively, while the NGX Banking Index depreciated in value by c. 0.53% and the NGX OIL&GAS Index remained flat. BUAFOODS led both the value and volume charts with c. 3.72 billion units and c. ₦50.00 million worth of trades.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦461.67/US$1.00 from ₦ 461.00/US$1.00 recorded at the close of the previous day.
Commodities
Oil prices fell on Tuesday after the U.S. government said it would release more crude from its Strategic Petroleum Reserve (SPR) as mandated by lawmakers, defying expectations from some traders that the release could be canceled or delayed. Brent Crude Oil price decreased by c.0.74% day-on-day to settle at US$85.97pb, while WTI decreased by c.1.10% day-on-day to settle at US$79.26pb as at the time of this report. Spot Gold appreciated by c.0.31% day-on-day to close at US$1,869.30 per ounce as of report time.
