FIXED INCOOME MARKETS
Money Markets
Opening System liquidity increased to c.₦534.78 billion long, compared with the opening balance of ₦343.84 billion recorded last week Friday. However, the Open Repo Rate (OPR) and the Overnight Rate (O/N) both declined to 10.63% and 11.00% respectively.
Outlook: We expect the interbank rates to trade at similar levels tomorrow.
Treasury Bills
The treasury bills market started off with slight sell interests around the long end of the curve. However, market switched to a bullish posture, as more bids scouted for the mid to long dated papers, particularly May 22, Dec 19 and Jan 02 amongst others, with limited offers. Average yield shed c. 33bps to 5.8%.
Outlook: Market is expected to be at the sideline, as participants look forward to Wednesday’s treasury bills auction.
FGN Bonds
Similarly, the local bonds market opened with unmatched interests across the 2028, 2037 and 2050 papers. Subsequently, active buyers dominated the session with some consummated trades on selected papers. Nonetheless, average yield inched up by 2bps to 14.21%.
Outlook: We expect the market to trend on a similar note tomorrow.
Eurobonds
The Eurobond market was largely quiet today, on the back of the ongoing coronation of King Charles III at the United Kingdom. As a result, average yield remained at 12.73%.
Outlook: We expect tomorrow’s session to trade cautiously, in anticipation of the next US inflation data.
Equities
The Nigerian equity market closed on a positive note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c. 0.22% to close at 52,579.52, while year-to-date return improved to c 2.59%. Buying interest in ACCESSCORP (0.3%) and FBNH (0.15%) drove the upward trend in today’s session. The NGX Banking, Industrial Goods, Consumer Goods and Oil &Gas Indices all appreciated in value today by 0.62%, 0.03%, 0.56% and 0.35%, respectively. ACCESSCORP led both the volume and value charts with c. 167.61 million units and c. ₦ 1.92 billion, respectively.
Outlook: We expect the bullish bias to linger tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦461.25/US$1.00 from ₦462.23/US$1.00 recorded last week Friday.
Outlook: We expect the NAFEX rate to continue to revolve around $/₦462 – 463 levels.
Commodities
Oil prices rose slightly in early Asian trade on Monday as fears of a recession in the U.S., which drove prices down for three straight weeks for the first time since November, began to recede. Brent oil prices appreciated by c. 0.97% to $76.03per barrel in intraday trade, while WTI appreciated by c 1.02% day-on-day to settle at US$72.07pb as at print time. Meanwhile, Spot Gold appreciated by c. 0.21% day-on-day to close at US$2,029.10 per ounce as of report time.
Outlook: Oil prices are rising as recession fears fade.
