FIXED INCOME MARKETS
Money Markets
System liquidity improved slightly today, albeit still in the negative territory, following inflows from retail FX refund, as opening balance settled at c.-₦345.71 billion, compared to yesterday’s opening balance of c.-₦617.51 billion. As a result, Overnight Policy Rate (OPR) and Overnight Rate (O/N) declined moderately to 18.38% and 18.75%, respectively, compared to 18.50% and 19.00%, recorded yesterday.
Outlook: We expect the interbank rates to settle higher tomorrow, as retail FX auction should further dampen system liquidity.
Treasury Bills
The treasury bills market traded mixed sentiments, as sell interest on the back of higher stop rates at yesterday’s NTB auction, waned off slightly during today’s session. Few bids were recorded on the newly issued 1-year paper at c.12.20%. Thus, the average yield soared by 128bps to settle higher at 7.57%.
Outlook: We expect a mixed to bearish sentiment tomorrow.
FGN Bonds
The local bonds market was quiet today, but with a bearish undertone, particularly on the 2049 paper. Average yield pushed higher by 7bps to close at 14.06%.
Outlook: We anticipate similar trend in tomorrow’s session.
Eurobonds
The Eurobonds market rallied upward today, with buyside interests across board. Accordingly, average yield shed 61bps to 12.05%.
Outlook: We expect the bullish excitement to ease tomorrow.
Equities
The Nigerian bourse extended its bullish momentum today, as the Nigerian Stock Exchange All Share Index (NGX ASI) advanced in value by c.1.51% day-on-day, to close at 54,413.21 while year-to-date return closed at c.6.17%. Buying interest in OANDO (9.98%), MTNN (8.89%), and ZENITHBANK (0.78%), drove the positive performance today. The NGX Banking, and Industrial Indices appreciated in value by c. 1.00%, and c. 0.02%, respectively. However, the NGX Consumer Goods Index depreciated by c. -0.02%, while the Oil & Gas Index remained unchanged. TRANSCORP led the volume charts at c. 455.54 million units, and LIVINGTRUST led the value charts at c. ₦ 755.54 million.
Outlook: We expect the positive sentiment to continue tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦461.50/US$1.00 from ₦461.24/US$1.00 recorded yesterday.
Outlook: We expect the Naira to remain steady at $/₦461 – 462 levels at the NAFEX window.
Commodities
Crude Oil prices increased today, following the reported drop in U.S. crude stockpiles. Accordingly, Brent oil prices rose by c. 0.87% to $78.96 per barrel in intraday trade, while WTI appreciated by c.1.37% day-on-day to settle at US$73.97pb as at print time. Similarly, Spot Gold appreciated in value by c. 0.18% day-on-day to close at US$1,988.00per ounce as of report time.
Outlook: We expect the upward trend to linger tomorrow.
