FIXED INCOME MARKETS
Money Markets
Opening System liquidity improved to c.₦765.13 billion long, compared with yesterday’s opening balance of ₦659.87 billion. As a result, the Open Repo Rate (OPR) and the Overnight Rate (O/N) fell by 13bps and 10bps to 11.50% and 11.90% respectively.
Outlook: We expect the interbank rates to remain at current levels tomorrow.
Treasury Bills
After few interests for the one-year paper (6-June-2024) at the early hours of trading, market stayed quiet for the most part of today’s session. Nonetheless, the average mid-rate increased by 13bps to 5.87%.
Outlook: We expect a muted session tomorrow, in the absence of any jitters.
FGN Bonds
Activity in the local bonds market remained relatively quiet today, given the absence of positive catalyst. Average yield remained at 13.68%.
Outlook: We expect a similar trend tomorrow.
Eurobonds
The SSA Eurobonds market was bearish today, with selling interests across board. Meanwhile, the US jobless claims rose to 261k in June, surpassing consensus estimates and the preceding 233k. Consequently, the average yield expanded by 14bps to 11.29%.
Outlook: We expect the bearish trend to ease tomorrow.
Equities
The Nigerian equity market closed on a bearish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) declined by c.0.12% to close at 55,956.59 points, while year-to-date return settled at c 9.18%. Selling interests NB (-1.8%) and DANGCEM (-1.38%) led the downward trend in today’s session. The NGX Industrial and Consumer Goods Indices depreciated in value by 0.71% and 0.13%, respectively. While the NGX Banking and Oil & Gas Indices appreciated by 0.99% and 1.01%, respectively. UBA led both the volume charts with c.177.48 million units and the value with c. ₦ 1.73 billion.
Outlook: We expect the bearish bias to resurface tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦469.50 today, from ₦464.67/US$1.00 recorded yesterday.
Outlook: We expect the NAFEX rate to hover at similar levels tomorrow.
Commodities
Oil prices depreciated today as tighter supply resulting from Saudi Arabia’s pledged production cut and a potential pause to U.S. interest rate hikes offset worries over demand weakness and a global economic slowdown. As of report time, Brent oil prices depreciated by c. 0.45% to $76.60pb, day-on-day, while WTI depreciated by c 0.61% day-on-day to settle at US$72.09pb. Spot Gold increased by c. 1.16% day-on-day to close at US$1,981.10per ounce as of report time.
Outlook: We expect the downward trend to spill into tomorrow’s session, barring any positive catalyst.
