FIXED INCOME MARKETS
Money Markets
Opening system liquidity settled at ₦898.90 billion long, compared with yesterday’s opening balance of ₦574.64 billion. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) declined by 64ps and 66bps to 1.36% and 2.14% respectively.
Outlook: We expect the interbank rates to continue to hover at its low levels
Treasury Bills
The Treasury bills market extended its bullish rally in today’s session, as participants continued to cherry-pick selected papers. Thus, the average mid-rate suffered 63bps to settle at 4.09%.
Outlook: We expect the next trading session to be skewed towards the treasury bills auction
FGN Bonds
Activity in the FGN bonds market sustained its bullish posture, as yields continued to bleed to 14.00% levels and below. Buyside interests spilled across several papers, which led average yield to shed 62bps to close at 12.43% at the end of trading.
Outlook: We expect to the bullish bias to linger
Eurobonds
The Eurobonds market trended bullish today, as buyside interests was observed across the curve. Average yield fell by 13bps to 10.49%.
Outlook: We expect the bullish bias to resurface, albeit on a cautious note
Equities
The Nigerian equity market closed on a bullish note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.1.30% to hit 60,000 marks, precisely 60,108.86 points, while year-to-date return settled at c 17.28%. Buying interests in GTCO (+5.20%) and ZENITHBANK (+4.62%) pushed the Index to close bullish. All Indices closed in the green. The NGX Consumer Goods and Oil & Gas Indices appreciated in value by 0.40%, and 3.21% respectively. While the NGX Banking and Industrial Goods Index appreciated by 3.50% and 0.17%. ACCESSCORP led the volume charts with c.111.67 million units while GTCO led the value with c. ₦ 2.69 billion.
Outlook: We expect the bullish bargain to remain dominant, as foreign investors continue to raise the bar for a bullish rally.
Foreign Exchange
FMDQ’s I & E rate appreciated to ₦763.00 today, from ₦768.17/US$1.00 recorded yesterday.
Outlook: We expect the volatility to persist tomorrow.
Commodities
Oil prices slipped today on signals that the European Central Bank is not done with interest rate hikes, while investors awaited data that could shed light on U.S. fuel consumption during the peak summer driving season. Brent oil prices depreciated by c. 1.93% to $72.75pb, day-on-day, while WTI decreased by c 1.87% day-on-day to settle at US$68.07pb. Spot Gold depreciated by c. 0.57% day-on-day to close at US$1,922.80per ounce as of report time.
Outlook: We expect Oil prices to range in the interim, pending any significant driver.
