FIXED INCOME MARKETS
Money Markets
Opening system liquidity decreased to ₦668.52 billion long, compared with yesterday’s opening balance of ₦900.25 billion. Thus, the Open Repo Rate (OPR) and the Overnight Rate (O/N) decreased by 267ps and 290bps to 8.83% and 9.00% respectively.
Outlook: We expect the interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market was relatively bullish today, with buy interests witnessed across the curve, particularly the June 2024 papers. Consequently, the average mid-rate decline to 5.62%.
Outlook: We expect market players to trade cautiously tomorrow, as they anticipate next week’s primary market auction.
FGN Bonds
The local bonds market traded actively today, with most of the interests skewed to the 2026, 2035, 2036, 2037, 2049, 2050 and 2053 papers. The latter traded as low as 15.40%, before bids trended upwards to c.15.50%. At the closing bell, the average mid-yield fell by 24bps to settle at 13.52%.
Outlook: We expect to see further cherry-picking, given the attractive yield levels.
Eurobonds
The Eurobonds market was bearish at the early hours of trading. Although, some buyers came into the market which led market sentiment to turned relatively mixed. Nevertheless, selling pressures were stronger, as this led average yield to increase by 3bps to 10.54%. Elsewhere, the Bank of England raised policy rate by 50bps to 5.00%.
Outlook: We expect the bearish trend to be subdued 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.0.06% to close at 59,361.55 points, while year-to-date return settled at c 15.83%. Buying interests in WAPIC (0.08%) pushed the Index to close bullish. The NGX Consumer Goods and Oil & Gas Indices appreciated in value by 0.06%, and 0.43% respectively. While the NGX Banking and Industrial Goods Index fell by 0.62% and 0.02%. WAPIC led the volume charts with c.97.15 million units while GTCO led the value with c. ₦ 1.10 billion.
Outlook: We expect the bullish sentiment to persist tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to ₦765.13 today, from ₦763.17/US$1.00 recorded yesterday.
Outlook: We expect the volatility to persist tomorrow.
Commodities
Oil futures fell on Thursday, as investor anticipation of more interest rate hikes were offset by possibly optimistic U.S. oil inventory data after preliminary estimates showed a drop in stocks. Brent oil prices depreciated by c. 1.76% to $75.76pb, day-on-day, while WTI decreased by c 1.67% day-on-day to settle at US$71.32pb. Spot Gold depreciated by c. 0.37% day-on-day to close at US$1,937.70per ounce as of report time.
Outlook: We expect Oil prices to be depressed in the interim, amid demand concerns
