FIXED INCOME MARKETS
Money Markets
Opening system liquidity settled at ₦600.47 million long, compared with ₦849.86 million recorded yesterday. Consequently, the Open Repo Rate (OPR) and Overnight Rate (O/N) increased by 100bps and 142bps to 1.00% and 1.42%, respectively.
Outlook: We expect rates to maintain similar levels tomorrow.
Treasury Bills
The treasury bills market settled on a positive note in today’s session, as average yield lost 3bps to 3.86%. At mid-day, selling interests were seen around the long end of the curve, particularly on the newly issued 1-year paper (11-July 2024). Towards the end of the closing bell, bids scouted for the same paper.
Outlook: We expect the bullish theme to wane tomorrow.
FGN Bonds
While the mixed sentiment slightly persisted today, sentiment tilted to a bearish posture. To expatiate, selling interests were found around the 2028, 2032, 2038, and 2034 papers, with mild bids for the 2053 maturities. Average yield notched up by 5bps to 12.76%.
Outlook: We expect the market to trend sideways tomorrow, although, with weaker momentum.
Eurobonds
Market enthusiasm lingered in today’s session, with added positivism from the surge in oil prices (hitting $80/barrel), alongside low inflation prints in the United States. Buying interests were saturated across the curve of Sub-Saharan Africa, driving yields lower by 16bps to 10.28%.
Outlook: We expect the bullish rally to linger tomorrow.
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI depreciated by c.2.03%, to settle at 62,748.94 points, while year-to-date return settled at c 22.43%. Selling interests in FIDELITYBK (-10.00%), FBNH (-9.82%) and GTCO (-5.56%) impacted the negative trend in today’s session. Sectorial performance was in the red today, except the Industrial Goods Index which gained 0.69%. The NGX Oil & Gas, Consumer Goods and Banking Indices depreciated in value by 0.74%, 0.09% and 6.63% respectively. UBA led both the volume with 99.02 million units while GTCO led the value charts with ₦ 1.77 billion.
Outlook: We expect the bearish sentiment to ease tomorrow.
Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦746.28 as of today, compared to $/₦782.49 recorded yesterday. NAFEX rate printed at $/₦783.06 as of July 12, 2023.
Outlook: We expect rates to swing sideways in the interim.
Commodities
Oil prices hit $80 a barrel today, after U.S. inflation data implied interest rates in the world’s biggest economy are close to their peak. Brent oil prices appreciated by c.0.16% to $80.24pb, day-on-day, while WTI appreciated by c 0.08% day-on-day to settle at US$75.81pb. Spot Gold appreciated by c. 0.06% day-on-day to close at US$1,2.80 per ounce as of report time.
Outlook: We expect oil prices to stick to its upward trend tomorrow.
