FIXED INCOME MARKETS
Money Markets
Opening system liquidity decreased to ₦600.98 million long, compared with last week Friday’s opening balance of ₦1.15 billion. Nonetheless, both the Open Repo Rate (OPR) and Overnight Rate (O/N) declined by 22 bps and 43 bps, to settle at 1.14% and 1.57% respectively.
Outlook: We expect the interbank rates to remain depressed.
Treasury Bills
The treasury bills market traded on a calm note today, with little to no interests across the curve. Average yield declined by 3bps to 4.05%.
Outlook: We expect similar trend tomorrow.
FGN Bonds
The local bonds traded mostly bearish today, with less aggressive demands. Offers were seen on the 2028, 2029, and 2038 papers, with slight bids for 2050 maturity. Nonetheless, average yield remained at 12.29%.
Outlook: We expect the slight bearish sentiment to persist tomorrow.
Eurobonds
The Eurobonds market started quiet today, however, sentiments rerouted to the positive direction, as buyers increased momentarily on the back of Russia and Saudi Arabi’s intention to cut oil production. Average yield declined by 3bps to 10.50%.
Outlook: We anticipate a quiet session tomorrow, due to the holiday in the United States, to mark the country’s Independence Day.
Equities
The Nigerian equity market closed on a bullish note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.1.61%, to settle at 61,949.24 points, while year-to-date return settled at c 20.87%. Buying interests in UBA (+1.20%) and ACCESSCORP (+1.65%) pushed the Index to close bullish. The NGX Banking, Consumer Goods, Industrial Goods and Oil & Gas Indices appreciated in value by 6.78%, 0.52%,0.04% and 1.50% respectively. FCMB led the volume charts with c. 173.81million units, while ACCESSCORP led the value charts c. ₦ 2.38 billion, respectively.
Outlook: We expect the bullish posture to linger tomorrow, barring any negative drivers.
Foreign Exchange
FMDQ’s I & E rate appreciated to ₦741.50 today, from ₦769.25/US$1.00 recorded last week Friday.
Outlook: We expect the volatility to persist tomorrow.
Commodities
Oil prices fell in early Asian trade on Monday as global macroeconomic headwinds and the possibility of future Fed rate hikes overshadowed estimates of tighter supplies due to OPEC+ restrictions. Brent oil prices depreciated by c. 0.66% to $74.91pb, day-on-day, while WTI decreased by c 0.68% day-on-day to settle at US$70.16pb. Spot Gold depreciated by c. 0.48% day-on-day to close at US$1,920.20per ounce as of report time.
Outlook: We expect oil prices to fall tomorrow, as fears of global economic slowdown persist.
