FIXED INCOME MARKETS
Money Markets
Opening system liquidity increased to ₦839.84 billion long, compared with ₦824.00 billion recorded yesterday. However, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 14bps and 21bps to 1.07% and 1.57%, respectively.
Outlook: We expect the interbank rates to remain depressed tomorrow.
Treasury Bills
The treasury bills market was relatively active today, with buyside interests seen on selected papers around the belly and long end of the curve, particularly 25-July 2024. As a result, average yield declined by 8bps to 7.19%.
Outlook: We expect the bullish rally to linger tomorrow, but on a weaker note.
FGN Bonds
The local bonds market was dominated with offers for long-dated papers, like the 2049, 2050 and 2053 papers. At close, mid-yield increased marginally by 1bp to 13.50%, as bids remained scarce.
Outlook: We expect a mixed market sentiment tomorrow.
Eurobonds
The Eurobonds market closed on a bearish note today, as yield widened by 13bps to 10.35%. The broad selling interests was a continuous response to the downgrade of US debt rating by Fitch.
Outlook: We expect the bearish bias to resurface tomorrow, however, partly hinged on the US Job numbers.
Equities
The Nigerian’s bourse closed on a bullish note today, as the NGX ASI gained c.1.55%, to settle at 64,263.06 points, while year-to-date return settled at c.27.34%. Buying interests in DANGSUGAR (3.25%) and ACCESSCORP (0.90%) drove the positive performance today. The NGX Banking, Consumer and Industrial Goods index appreciated by 3.19%,2.24% and 0.01%, respectively, while the Oil &Gas Index lost 0.57%. STERLINGNG led the volume charts with 69.45 million units while ACCESSCORP led the value charts with ₦568.98 million.
Outlook: We expect a bullish sentiment tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦776.50, compared with $/₦741.64 recorded yesterday.
Outlook: We expect rates to remain volatile in the interim.
Commodities
After falling steeply from more than three-month highs the previous session, oil continued to decline on Thursday as a U.S. government credit rating dampened confidence. However, supply concerns offered support. Brent oil prices depreciated by c.0.12% to $83.10pb, day-on-day, while WTI depreciated by c 0.05% day-on-day to settle at US$79.45pb. Spot Gold depreciated by c.0.16% day-on-day to close at US$1,971.80 per ounce as of report time.
Outlook: We expect Oil prices drop as U.S. ratings are downgraded, offsetting supply issues.
