FIXED INCOME MARKETS
Money Markets
Opening System liquidity increased to c. ₦18.11billion long, compared with the opening balance of ₦14.55 billion long, recorded last week Friday. Consequently, the Open Repo Rate (OPR) and Overnight Rate (O/N) declined to 12.88% and 13.63% respectively.
Outlook: We expect the interbank rates to cling to similar levels tomorrow, barring any significant flows.
Treasury Bills
The treasury bills market posted a mixed to bullish sentiment in the first half of the session, with most activities domiciled on August 2023 and May 2024 papers. However, market activities reversed to a quiet stance. Nonetheless, average yield fell by 40bps to 6.03%.
Outlook: We expect the bearish bias to persist tomorrow.
FGN Bonds
The local bonds market was briefly active in today’s session only at mid-day, with mixed sentiments. Notably, we observed most buy interests on the 2028 paper, while sell interest was seen on the 2050 paper. Average yield declined by 2bps to 14.07%.
Outlook: We expect tomorrow’s session to trade quietly, as market anticipates interest decision by the monetary policy committee.
Eurobonds
Equities
The Nigerian equity market closed on a bullish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained c.0.35% to close at 52,369.13 points, while year-to-date return settled at c 2.18%. Observably, buying interest in ZENITHBANK (0.45%), and GTCO (0.55%) drove the positive trend today. The NGX Oil & Gas Index depreciated in value today by 0.64%. However, the NGX Banking, Industrial Goods and Consumer Goods Index appreciated in value by 0.89%, 0.01% and 0.39%, respectively, this week. ZENITHBANK led both the volume and value charts today with c. 53.43 million units and c. ₦ 1.38 billion, respectively.
Outlook: We expect the market to extend its bullish posture tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦463.50/US$1.00 from ₦463.00/US$1.00 recorded last week.
Outlook: We expect the NAFEX rate to hover at similar levels tomorrow.
Commodities
Oil prices fell on Monday as caution surrounding the discussions surrounding the U.S. debt ceiling and worries about the revival of Chinese demand outweighed support from decreased supplies from Canada and OPEC+ producers. As of report time, Brent oil prices appreciated by c. 0.12% to $75.67pb, day-on-day, while WTI depreciated by c 0.14% day-on-day to settle at US$71.45pb. However, Spot Gold depreciated by c. 0.01% day-on-day to close at US$1,981.40 per ounce as of report time.
Outlook: We expect Oil Prices to fall as supply concerns are tempered by U.S. debt prudence.
