FIXED INCOME MARKETS
Money Markets
Opening system liquidity settled at ₦849.86 million long, compared with ₦828.40 million recorded yesterday. Thus, the Open Repo Rate (OPR) and Overnight Rate (O/N) increased by 7bps and 8bps to 0.93% and 1.33%, respectively.
Outlook: We expect rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market closed on a bullish note today, after the early mixed sentiment that was witnessed across the mid and long-dated papers, particularly on December 2023 and June 2024. Average yield fell by 14bps to 3.89%.
Outlook: We expect the bullish theme to persist tomorrow, as unsuccessful auction bids scout for offers in the secondary market.
FGN Bonds
The local bonds market traded on a mixed-to-bullish note, with activity saturated around the 2037, 2038, 2049 and 2053 papers. Overall, average yield fell by 4bps to 12.71%. Noteworthy as well is FMDQ’s commencement of the trading and settlement of FGN Bond Futures.
Outlook: The bullish posture is expected to linger tomorrow. Also, we expect activity to gradually pick-up in the derivatives market.
Eurobonds
The key event today was the US CPI data release, which slowed to 3.0%, below 4.00% in May 2023 and 3.10% estimate. Notably as well was the NGERIA 2023 paper that was redeemed today. Overall, the SSA and North African papers maintained its bullish bias, with 37bps decline in average yield to 10.45%.
Outlook: We expect the buyside activity to intensify tomorrow..
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI depreciated by c.2.47%, to settle at 65,046.93 points, while year-to-date return settled at c 24.97%. Selling interests in FBNH (-10.00%) and DANGCEM (-9.62%) impacted the negative trend in today’s session. Sectorial performance was in the red today. The NGX Oil & Gas, and Industrial Goods Indices depreciated in value by 0.54%, and 5.39% respectively. While the NGX Consumer Goods and Banking Indices depreciated in value by 0.77% and 2.61%, correspondingly. UBA led both the volume with 177.79 million units and the value charts with ₦ 2.44 billion.
Outlook: We expect a mixed session tomorrow.
Foreign Exchange
FMDQ’s I & E rate closed at $/₦782.49 as of today.
Outlook: We expect the volatility to continue, as players continue to find the true value of the Naira.
Commodities
Oil prices surged above $80 a barrel for the first time since May after U.S. inflation data suggested the interest rate hike cycle in the world’s biggest economy is set to finally cool. Brent oil prices appreciated by c.0.55% to $79.84pb, day-on-day, while WTI appreciated by c 0.88% day-on-day to settle at US$75.49pb. Spot Gold appreciated by c. 1.40% day-on-day to close at US$1,964.00 per ounce as of report time.
Outlook: We expect oil prices range in tomorrow’s session.
