FIXED INCOME MARKETS
Money Markets
Opening system liquidity decreased to ₦613.33 billion long, compared with yesterday’s opening balance of ₦668.52.25 billion. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) decreased by 593ps and 560bps to 2.90% and 3.40% respectively.
Outlook: We expect the interbank rates to hover at similar levels next week.
Treasury Bills
The treasury bills market traded cautiously today, with slight buy interests on selected papers, as market braced up for next week’s auction. Overall, the average mid-rate remained at 5.62%.
Outlook: Market players are expected to shift their attention to the treasury bills auction next week, as the DMO intends to sell ₦ 187bn treasury bills.
FGN Bonds
The local bonds market witnessed a bullish rally today across 2026, 2037, 2042, 2050 and 2053 papers. Consequently, the average mid-yield shed 17bps to settle at 13.35%.
Outlook: We expect the bullish sentiment to extend into next week, although, on a less aggressive note.
Eurobonds
The Eurobonds market traded sideways today, with most activities seen around the long-dated papers. Average yield increased by 4bps to 10.58%. Meanwhile, Zambia reached an agreement in principle to restructure the country’s $6.3 billion of debt with bilateral lenders.
Outlook: We expect to see occasional swings across regions next week, as global economic data continue to drive investors’ sentiments.
Equities
The Nigerian equity market closed on a bearish note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) depreciated by c.0.26% to close at 59,206.63 points, while year-to-date return settled at c 15.52%. Selling interests in GTCO (0.2O%) and COINOIL(5.75%) pulled the Index to close bearish. The NGX Consumer Goods Index appreciated in value by 0.06%. While the NGX Banking, Industrial Goods and Oil& Gas Indices fell by 0.54%,0.02% and 0.73% respectively. LIVINGTRUST led the volume charts with c.113.00 million units while GTCO led the value with c. ₦ 1.54 billion.
Outlook: We expect the bearish sentiment to linger next week,, amid month-end profit taking.
Foreign Exchange
FMDQ’s I & E rate depreciated to ₦770.17 today, from ₦765.13/US$1.00 recorded yesterday.
Outlook: We expect the volatility to persist next week.
Commodities
Oil prices fell for the second consecutive session and were on track for a weekly drop of more than 3% on Friday, as a higher-than-expected interest rate hike in the United Kingdom and warnings about future rate hikes in the United States fueled concerns about demand. Brent oil prices depreciated by c. 1.62% to $72.94pb, day-on-day, while WTI decreased by c 1.84% day-on-day to settle at US$68.23pb. Spot Gold appreciated by c. 0.19% day-on-day to close at US$1,927.40per ounce as of report time.
Outlook: We expect Oil prices to be depressed in the interim, amid demand concerns and hawkish central banks’ chatters.
