FIXED INCOME MARKETS
Money Markets
Opening System liquidity decreased to c. ₦278.44 billion long, compared with the opening balance of ₦489.03 billion long, recorded yesterday. Consequently, both the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased to 12.75% and 13.25% respectively.
Outlook: We expect the interbank rates to inch upwards next week.
Treasury Bills
The treasury bills market witnessed a quiet theme to end the week, albeit there were a couple of trades executed across August 2023, November 2023, March 2024 and May 2024 papers. Overall, the average mid-rate closed at 4.90%.
Outlook: We expect a mixed theme next week, amid month-end bookkeeping.
FGN Bonds
The local bonds market extended its mixed performance today, with interests across several papers including the 2026, 2027, 2049 and 2050 maturities. Thus, the average yield declined by 3bps to 13.81%.
Outlook: We expect a similar play next week.
Eurobonds
The Eurobonds market closed on a bearish mode today, with selling interests across the curve. Market was also jittered by the U.S core PCE Index which printed at 0.4% in April, higher than 0.3% estimate. As a result, average yield increased by 6bps to 11.69%.
Outlook: We expect the direction of the market to be impacted by economic data releases next week.
Equities
The Nigerian equity market closed on a bullish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained c.0.29% to close at 52,973.88 points, while year-to-date return settled at c 3.36%. Observably, buying interest in MTNN (1.3%), and ZENITHBANK (0.25%) drove the positive trend today. The NGX Banking, Consumer Goods and Oil &Gas Indices all appreciated in value by 2.14%, 0.41%.and 1.05% respectively. However, the Industrial Goods Index depreciated in value today by 0.88%. UBA led the volume charts today with c. 59.41 million units, while MTNN led the value charts today with c. ₦ 1.55 billion.
Outlook: We expect the bullish posture to linger next week.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦464.51/US$1.00 from ₦463.67/US$1.00 recorded yesterday.
Outlook: We expect the NAFEX rate to hover at similar levels next week.
Commodities
Oil prices fell in early Friday trade, pulled down by mixed messages from Russia and Saudi Arabia ahead of the upcoming OPEC+ policy meeting, as well as a stronger dollar. As of report time, Brent oil prices depreciated by c. 0.22% to $76.09pb, day-on-day, while WTI depreciated by c 0.10% day-on-day to settle at US$71.76pb. Spot Gold appreciated by c. 0.62% day-on-day to close at US$1,955.80per ounce as of report time.
Outlook: We expect Oil prices to decline because of contradicting OPEC+ and Russia statements, as well as appreciation of the Dollar.
