FIXED INCOME MARKETS
Opening system liquidity recorded a negative balance of c.₦ 22.1 billion, slightly improved when compared to yesterday’s negative balance of c.₦ 57.8 billion. Consequently, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined to 16.50% and 16.94% respectively from 17.38% and 17.88% recorded the previous day.
The treasury bills market sustained its bearish theme today, as sellers offered short-to-mid dated papers ( 6 March, 17, April, and 29 May Bills amongst other tenors) due to tight system liquidity. However, offers moderated slightly as trading progressed amid the FAAC meeting held, where
N 750.17bn was shared among FG, States and LGs. There will be an NTB primary market auction tomorrow, where c. N 263.51bn will be offered across the usual tenors.
The local bonds market traded selectively sideways, with few buy interests skewed to the long end, particularly on the 2037, 2042 and 2050 papers, while mild sell interests were observed across selected short-dated maturities like the 2028 and 2034 maturities. Thus, the average mid-yield fell by c.4bps to settle at 13.59%.
The Eurobonds market was bearish across the SSA curves, albeit, less aggressive, in the absence of any positive catalyst to taper the risk-off sentiments fuelled by bets of steeper rate hikes. Overall, average yield increased by c.8bps to 12.19%.
The Nigerian domestic bourse reversed its bullish trend, as the Nigerian Stock Exchange All Share Index (NGX ASI) declined in value by c.0.06% day-on-day to close at 54,189.31points while year-to-date return closed at c.5.73%. Selling activities on bellwethers like TRANSCORP (-4.03%) ACCESSCORP (-1.63%) and GTCO (-0.40) drove the index south.
The NGX Consumer Goods, Industrial & Banking Indices all declined in value by c. 0.16%, c. 0.001% and c. 0.38% respectively, while the NGX Oil &Gas Index appreciated in value by c. 0.28%. GTCO led both the volume and value charts with c. 31.07 million units and c. ₦ 779.38 million worth of trades respectively.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦ 461.33/US$1.00 from ₦ 461.50/US$1.00 recorded at the close of the previous day.
Brent oil slipped in a volatile session today as concern about a demand-denting global economic slowdown outweighed supply curbs and prompted investors to take profits on the previous day’s gains. Brent Crude Oil price declined slightly by c.0.58% day-on-day to settle at US$83.58pb, while WTI increased by c.0.59% day-on-day to settle at US$76.79pb as at the time of this report. Spot Gold depreciated in value by c.0.18% day-on-day to close at US$1,846.90 per ounce as of report time.