FIXED INCOME MARKETS
System liquidity remained depressed today, in the absence of any significant inflows. Thus, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) both remained unaltered at 18.63% and 19.00%, respectively.
Outlook: We expect the interbank rates to close at similar levels tomorrow.
Activity in the treasury bills market was relatively unstirred, as participants’ interests were domiciled at the long end of the curve. At the early period of trading, sell interests were seen on April 11, 2024. Although, demand came in for March 14, 2024, shortly before the closing bell with few trades consummated, and average yield settling flat at 6.99%.
Outlook: We expect a similar performance tomorrow.
The local bonds market traded quiet today, as the focus was largely on the FGN bonds auction, albeit mild mixed sentiment was observed on the 2049 paper. Unsurprisingly, average yield reposted 14.01%.
Outlook: We expect the market to react to the bonds auction result.
The Eurobonds market swerved from a quiet posture at the early hours of trading to a bearish performance towards the end of trading, with lower prices recorded across most SSAs and North African papers.
Outlook: We expect the market to be hinged on the outcome of some economic data tomorrow.
The Nigerian equity market started the week on a negative note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) dipped by c. 1.94% to closed at 51,120.94, while year-to-date return settled on a negative territory at c -0.25% for the first time this year. Selling interest in MTN (-6.67%) and ZENITHBANK (-0.45%) pulled down the market index today. The NGX Banking Index depreciated in value by 5.53%. On the flip side, the Consumer Goods Index appreciated by 0.07%, while the Industrial Goods and Oil and Gas Indices closed flat TRANSCORP led the volume charts with c.63.44 million units while ZENITHBANK led the value charts with c. ₦ 292.63 million.
Outlook: We expect the bearish trend to linger tomorrow.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦462.25/US$1.00 from ₦464.00/US$1.00 recorded last week Friday.
Outlook: We expect the exchange rate to close at similar levels tomorrow.
Oil prices receded today, as investors anticipated a likely increase in interest rate come May by the U.S. Federal Reserve, which could dampen economic recovery hopes. Brent oil prices depreciated by c. 0.58% to $85.81 per barrel in intraday trade, while WTI fell by c 0.64% day-on-day to settle at US$81.99pb as at print time. Similarly, Spot Gold depreciated below the $2,000 mark by c. 0.82% day-on-day to close at US$1,999.20 per ounce as of report time.
Outlook: We expect the direction of crude oil prices to be driven by the subsequent economic data.