FIXED INCOME MARKETS
Money Markets
Opening System liquidity improved to c.₦659.87 billion long, compared with yesterday’s opening balance of ₦370.70 billion. However, the Open Repo Rate (OPR) and the Overnight Rate (O/N) remained unchanged at 11.63% and 12.00%.
Outlook: We expect the interbank rates to remain at current levels tomorrow
Treasury Bills
The treasury bills market endured a quiet session today, as market participants’ attention tilted to the treasury bills auction. Nonetheless, the average mid-rate increased by 5bps to 5.75%.
Outlook: We expect a relatively bullish market tomorrow, as unmet demand at today’s auction should filter to the secondary market.
FGN Bonds
Activity in the local bonds market remained relatively muted, with mild buying interests. Overall, the average mid-yield increased by only 2bps to 13.68%.
Outlook: We expect the current trend to persist tomorrow.
Eurobonds
Activity on the Nigerian Eurobonds market was quiet today. However, Ghana, Egypt and Angola witnessed a bullish performance with buying interests across board. Consequently, the average yield fell by 2bp to settle at 11.15%.
Outlook: We expect a similar trend tomorrow, in the absence of any significant driver.
Equities
The Nigerian equity market closed relatively bearish, as the Nigerian Stock Exchange All Share Index (NGX ASI) declined by c.0.02% to close at 56,025.56 points, while year-to-date return settled at c 9.32%. Selling interests in the banking sector partly contributed to the negative performance today. The NGX Banking, Industrial and Consumer Goods Indices depreciated in value by 0.25 %, 0.02%, and 0.01% respectively. While NGX Oil & Gas Index appreciated by 0.42%. GTCO led the volume charts with c.43.03 million units and AIRTELAFRI led the value with c. ₦ 2.71 billion.
Outlook: We expect a relatively bullish performance tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate remained at ₦464.67/US$1.00 today.
Outlook: We expect the NAFEX rate to hover at similar levels tomorrow.
Commodities
Oil prices nudged higher today, as market further digested Saudi Arabia’s surprise weekend pledge to deepen output cuts. As of report time, Brent oil prices appreciated by c. 1.63% to $77.54pb, day-on-day, while WTI appreciated by c 1.87% day-on-day to settle at US$73.08pb. Spot Gold declined by c. -0.67% day-on-day to close at US$1,968.30per ounce as of report time.
Outlook: We expect the downward trend to spill into tomorrow’s session, barring any positive catalyst.
