FIXED INCOME MARKETS
Money Markets
Opening system liquidity settled at ₦430.12 million long, compared with ₦440.52 million recorded last week Friday. Consequently, the Open Repo Rate (OPR) and Overnight Rate (O/N) decreased by 7bps and 16bps to 1.04% and 1.42%, respectively.
Outlook: We expect rates to maintain similar levels tomorrow.
Treasury Bills
Activity in the treasury bills market was less active today. Only mild selling interests were noticed around the long-dated papers. Overall, the average mid-rate closed c.7bps lower to 3.98%.
Outlook: We expect activity to remain less aggressive tomorrow.
FGN Bonds
The bond market was muted today, with heightened tensions around expectations of the FGN bond auction result. Although, sell interests were briefly seen on the long-dated maturities, particularly 2053 maturity and buying interests on the 2050 paper. Thus, average yield fell by 6bps to 12.73%.
Outlook: We expect market to be impacted by the auction result.
Eurobonds
The Eurobonds market was mixed today. Sub-Saharan Africa started off bearish in the early hours of trading, partly tied to China’s disappointing GDP report. The second largest economy recorded 0.8% quarterly growth rate for Q2’2023 (from 2.2% in Q1’23). Afterwards, market tilted slightly bullish, with buy interests on selected papers. On the flip side, North African papers stayed in the bullish territory. Average yield declined by 4bps to 10.24%.
Outlook: We expect the mixed sentiment to persist tomorrow, pending any strong catalyst.
Equities
At the end of the first trading day of the week, the Nigerian’s bourse closed on a positive note today, as the NGX ASI gained c.0.60%, to settle at 62,943.35 points, while year-to-date return settled at c 22.81. Buying interests in FBNH (+1.55%), and ACCESSCORP (+1.45%) positively impacted the trend in today’s session. Sectorial performance was in the red today, except the Banking Index which gained 7.57%. The NGX Oil & Gas, Consumer Goods and Industrial Goods Indices depreciated in value by 0.62%, 0.66% and 0.69% respectively. STERLINGNG led the volume charts with 65.95million units, while DANGCEM led the value charts with ₦ 7.49billion.
Outlook: We expect the bullish sentiment to ease linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦795.28 as of today, compared to $/₦803.90 recorded last week Friday. NAFEX rate printed at $/₦772.21 as of July 14, 2023.
Outlook: We expect rates to swing sideways in the interim.
Commodities
Oil prices fell for a second session on Monday after Libya restarted production over the weekend, while China, the world’s largest crude importer, is anticipated to disclose economic data indicating that the country’s post-pandemic rebound is fading. Brent oil prices decreased by c.1.40% to $78.75pb, day-on-day, while WTI depreciated by c 1.51% day-on-day to settle at US$74.28pb. Spot Gold depreciated by c. 0.42% day-on-day to close at US$1,956.10 per ounce as of report time.
Outlook: We expect oil prices to fall after Libya resumed production.
