FIXED INCOME MARKETS
Opening system liquidity recorded a negative balance of c.₦ 57.8 billion compared to yesterday’s opening balance of c.₦ 156.6 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) increased to 17.38% and 17.88% respectively from 17.13% and 17.81% recorded the previous day.
Activities in the treasury bills market was subdued in today’s session, as market participants braced up for the NTB auction later this week. On that note, average yield closed unaltered at 4.14%
The local bonds market was relatively calm with mixed sentiments, as we witnessed sustained sell interests and uncommitted buying interests across selected papers. Specifically, unaggressive demand was noticed on 2026, 2028 and 2042 papers, with similar bearing momentum on some selected maturities. Consequently, average yield closed at 13.50%.
Amidst the President’s Day holiday in the United States, activities in the Eurobonds market were slightly steered with mixed sentiments across the SSA curves. While the Nigeria’s and Egypt curves was mildly bullish, Ghana and other SSA posted bearish sentiments. Overall, the average yield across the Nigerian curve was recorded at 11.61%.
The Nigerian domestic bourse closed on a positive note, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.78% day-on-day to close at 54,224.35 points while year-to-date return closed at c.5.80%. Buying activities on bellwethers like TRANSCORP (+3.33%) AIRTELAFRI (+3.85%) and UBA (+0.60) drove the bullish theme.
The NGX Consumer Goods, Banking and Oil & Gas Indices all appreciated in value by c. 0.02%, c. 0.18% and c. 0.86% respectively, while the NGX Industrial Goods Index depreciated in value by c. 0.05%. AIRTELAFRI led the value charts with c. 2.94 billion units and GTCO led the volume charts with c. ₦36.68 million worth of trades.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦461.50/US$1.00 from ₦ 461.25/US$1.00 recorded at the close of last week.
Oil prices were little changed in early Asian trade today, after settling down $2 a barrel on Friday, as rising supplies in the United States and forecasts of more interest rate hikes cooled optimism over China’s demand recovery. Brent Crude Oil price increased by c.0.77% day-on-day to settle at US$83.64pb, while WTI increased by c.0.72% day-on-day to settle at US$76.89pb as at the time of this report. Spot Gold also appreciated by c.0.25% day-on-day to close at US$1,854.80 per ounce as of report time.