FIXED INCOME MARKETS
Opening System liquidity decreased to c. ₦114.79 billion long, compared with the opening balance of ₦229.11 billion long, recorded yesterday. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) both declined by 100bps to 11.75% and 12.25%, respectively.
Outlook: We expect the interbank rates to maintain similar levels tomorrow.
The treasury bills market endured a quiet session, albeit with a bullish undertone, as most players focused on month-end bookkeeping. Only a handful of trades were executed across the mid and long dated papers. Overall, the average mid-rate closed at c.5.14%.
Outlook: We envisage the new month to start with a bullish bias.
Activity in the FGN bonds market was relatively muted, with pockets of trades witnessed across the 2028, 2037, 2042 and 2050 papers. Thus, the average mid-yield declined by 3bps to settle at 13.71%.
Outlook: We expect the positive sentiment to resurface tomorrow
The Eurobonds market gulped yesterday’s gains, with selling interest across the curve on Nigeria’s papers and its SSA peers. This was fuelled by month-end profit taking by investors. Overall, the Average yield increased by 5bps to 11.22%.
Outlook: We expect the bearish sentiment to ease tomorrow.
The Nigerian equity market closed on a bullish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained c.0.06% to close at 55,769.28 points, while year-to-date return settled at c 8.82%. Observably, buying interest in CONOIL (9.96%), and 40.8 (9.93%) drove the positive trend today. The NGX Oil & Gas and Consumer Goods Indices appreciated in value by 1.63% and 2.08% respectively. While NGX Banking and Industrial Goods Indices depreciated by 2.46%, and 2.52%, respectively. ACCESSCORP led both the volume charts with c. 98.73 million units while GEREGU led the value charts c. ₦ 9.76 billion.
Outlook: We expect the bullish sentiment to persist tomorrow.
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦464.67/US$1.00 from ₦464.50/US$1.00 recorded last week yesterday.
Outlook: We expect the NAFEX rate to hover at similar levels tomorrow.
Oil prices fell today on the back of a stronger U.S. dollar alongside weak data from top oil importer China, raised demand fears. As of report time, Brent oil prices depreciated by c. 0.99% to $72.89pb, day-on-day, while WTI depreciated by c 0.56% day-on-day to settle at US$69.07pb. Spot Gold appreciated by c. 0.50% day-on-day to close at US$1,967.70per ounce as of report time.
Outlook: We expect jitters on U.S. debt negotiations to continue to impact Oil prices tomorrow.