FIXED INCOME MARKETS
Money Markets
Opening System liquidity improved today with an eye-watering positive balance of ₦525.78 billion, compared with the opening balance of -₦407.88 million recorded yesterday. Consequently, the Open Repo Rate (OPR) and Overnight Rate (O/N) decreased by 351bps and 375bps to 11.13% and 11.50%, respectively.
Outlook: We expect the interbank rates to depress further tomorrow, against the backdrop of c. ₦735 billion FGN maturity inflows.
Treasury Bills
Treasury bills market was relatively quiet today, due to market concentration at the auction. Although, few buyside interests were noticed on the 11 April 2024 paper. Average yield fell by c. 155bps to 5.05%.
Outlook: We anticipate a bullish theme tomorrow, as investors scramble to fill lost bids following the decline in stop rate for the 1-year paper.
FGN Bonds
The local bonds market stirred up slightly today, as buyside interests were mostly witnessed on the 2028, 2049 and 2050 papers. As a result, average yield lost 3bps to settle at 13.84%.
Outlook: We expect the market to further extend its bullish bias in tomorrow’s session, on the back of heightened optimism on the 2023 FGN Bond maturity inflows.
Eurobonds
The relief of yesterday’s performance intensified in today’s session, as participants showed buyside interests across board. The average yield fell deeper by 40bps to settle at 12.58% compared with yesterday’s 19bps decline.
Outlook: We expect tomorrow’s session to be swayed by U.S GDP data for Q1’2023.
Equities
The Nigerian equity market closed on a positive note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained c. 0.81% to closed at 52,097.62, while year-to-date return settled at c 1.65%. Buying interest in TOTAL (9.96%) and TRANSCORP (9.96%) drove the uptrend in today’s session. The NGX Industrial and Consumer Goods Indices appreciated by 0.16%, and 0.61%, respectively. However, the Banking and Oil & Gas Indices lost 0.08% and 0.04%, accordingly. TRANSCORP led both the volume charts with c. 1.124 billion units and the value charts with c. ₦ 3.32 billion.
Outlook: We expect the bullish bias to linger tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦462.13/US$1.00 from ₦463.44/US$1.00 recorded yesterday.
Outlook: We expect the exchange rate to revolve around $/₦462 – 463 levels.
Commodities
Oil prices extended its losses today as weak U.S data stoked up fears of slowdown in the economy. Brent oil prices depreciated by c. 0.46% to $80.40 per barrel in intraday trade, while WTI depreciated by c 0.12% day-on-day to settle at US$76.98pb as at print time. Similarly, Spot Gold depreciated by c. 0.01% day-on-day to close at US$2,004.20 per ounce as of report time.
Outlook: We expect the decline in crude oil prices to sustain in tomorrow’s session.
