FIXED INCOME MARKETS
Money Markets
Opening system liquidity increased to ₦360.65billion long, compared with ₦294.35 billion recorded yesterday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) decreased by 315bps and 400bps to 2.75% and 3.20%, respectively.
Outlook: We expect the interbank rates to remain at similar levels tomorrow.
Treasury Bills
The bullish bias from yesterday also trickled into today’s session, albeit, on a less aggressive note. Buying interests were across selected papers while slight selling interests were noticed on June 2024 paper. Average yield fell by 15bps to 6.84%.
Outlook: Tomorrow’s session is expected to be skewed towards the primary market auction, as the DMO would be offering c. ₦153.99bn worth of treasury bills
FGN Bonds
Slight buying interest was also noticed in the bond market. However, this was accompanied by a quiet undertone. Consequently, yield declined by 7bps to 13.41%.
Outlook: We expect a similar trend tomorrow.
Eurobonds
Nigeria’s Eurobonds market settled bearish in today’s session. Average yield across the curve increased by 8bps to 10.31%. Further, market traded sideways, with Angola’s papers in parallel trend with Nigeria, and a further extension with gains recorded on Ghana’s papers,
Outlook: The market could stay quiet tomorrow, in the absence of any significant catalyst.
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI lost c.0.04%, to settle at 65,309.65 points, while year-to-date return settled at c.27.43%. Selling interests in STERLINGNG (-0.14%) and FIDELITYBK (-0.25%) drove the negative performance today. The NGX Banking Index appreciated by 0.61%, while the NGX Industrial Goods ,Consumer Goods and Oil &Gas Indices lost 0.05%, 0.05% and 0.25% respectively. ACCESSCORP led both the volume charts and the values charts today with 49.36 million units and ₦861.16 million, respectively.
Outlook: We expect the bearish sentiment to linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦757.51, compared with $/₦774.78 recorded yesterday.
Outlook: We expect rates to remain volatile in the interim
Commodities
On Tuesday, oil prices increased as the market was underpinned by supply worries brought on by Saudi Arabia and Russia’s production curbs. Brent oil prices depreciated by c.0.33% to $85.06pb, day-on-day, while WTI depreciated by c 0.31% day-on-day to settle at US$81.69pb. Spot Gold depreciated by c.0.08% day-on-day to close at US$1,968.50 per ounce as of report time.
Outlook: We expect oil prices to rise.
