FIXED INCOME MARKETS
Money Markets
Opening system liquidity increased to ₦866.57 billion long, compared with yesterday’s opening balance of ₦711.13 billion. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) both remained unchanged at 11.60% and 12.10% respectively.
Outlook: We expect the interbank rates to remain at current levels tomorrow.
Treasury Bills
The treasury bills market traded on a calm note today, partly due to a more stabilized system liquidity linked to the policy reforms by the new administration. Few buyside interests were observed across the short to mid dated papers, while the long end witnessed more sellers.
Outlook: We expect activity to remain quiet in the interim, in the absence of any significant driver.
FGN Bonds
The local bonds market endured a prolonged period of calmness, after the early mild rally witnessed on the newest 30-year paper (2053) and buyside interest observed across 2028, 2029, 2035, 2036 and 2037 maturities. Overall, the average mid-yield closed at 13.75%.
Outlook: We anticipate a similar trend tomorrow.
Eurobonds
The Eurobonds market trended downward but with a mixed backdrop, suggesting profit taking by market participants. As a result, average yield increased by 7bps to 10.47%.
Outlook: We expect the bearish bias to ease tomorrow.
Equities
The Nigerian equity market closed on a bullish note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.16% to close at 59,110.02 points, while year-to-date return settled at c 15.33%. Buying interests in ACCESSCORP (0.05%) and GTCO (0.25%) pushed the Index to close bullish. Gains were recorded across the board, as the NGX Banking, Industrial Consumer Goods and Oil &Gas Indices all appreciated in value by 0.02%, 0.10% ,0.06%,and 1.41% respectively. UBA led the volume charts with c.78.51 million units while GTCO led the value with c. ₦ 2.11billion.
Outlook: We expect the bullish sentiment to persist tomorrow.
Foreign Exchange
FMDQ’s I & E rate appreciated to ₦756.61 today, from ₦770.38/US$1.00 recorded yesterday.
Outlook: We expect the I&E rate to remain volatile.
Commodities
Oil prices rose mildly today, following an interest rate cut in China (lowered by 10bps to 3.55%), but the modest scale of the monetary action has disappointed the market. The People’s Bank of China cut its one-year Prime Lending Rate for the first time in ten months, after mounting evidence that the country’s post-Covid fightback is faltering. Brent oil prices appreciated by c. 0.45% to $76.43pb, day-on-day, while WTI depreciated by c 0.78% day-on-day to settle at US$71.22pb. Spot Gold depreciated by c. 0.32% day-on-day to close at US$1,964.80per ounce as of report time.
Outlook: We expect Oil prices to be depressed in the interim, amid demand concerns.
