FIXED INCOME MARKETS
Money Markets
Opening system liquidity decreased to ₦215.74 billion long, compared with ₦298.28 billion recorded last Friday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) both increased by 300bps to 5.00% and 5.80%, respectively.
Outlook: We expect the interbank rates to stay at current levels tomorrow
Treasury Bills
The treasury bills market maintained a quiet position today, with mild offers noticed on selected papers. Thus, average yield remained at 8.79%.
Outlook: We expect market to trend bearish tomorrow
FGN Bonds
The local bonds market was largely quiet in today’s session, as activity tilted towards the FGN bond auction. Average yield closed flat at 13.74%.
Outlook: Market activities should be dictated by the auction result
Eurobonds
African Eurobonds witnessed a bearish theme, with selling interest observed across all tenors, as the Nigerian curve continue to witness low investors’ confidence amid the recent release of CBN’s financials. Consequently, average yield expanded by 81bps to 11.06%.
Outlook:We expect the bearish trajectory to persist tomorrow
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI depreciated by c.0.44%, to settle at 65,036.37 points, while year-to-date return settled at c.26.90%. Selling interests in OKOMUOIL (5.66%), and ZENITHBANK (2.57) drove the negative performance today. The NGX Banking and Industrial Indices depreciated by 1.13% and 1.10%, respectively. While the NGX Consumer Goods Index gained 0.47%. The Oil &Gas Index fell by 0.44%. TRANSCORP led both the volume charts with 41.76 million units while GTCO led the value charts with ₦585.09 million.
Outlook: We expect the bearish sentiment to linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦744.41, compared with $/₦740.60 recorded last Friday.
Outlook: We expect rates to remain volatile in the interim.
Commodities
Oil prices ranged today as investors weighed concerns about China’s faltering economic recovery and a stronger dollar against seven weeks of gains on tightening supply from OPEC+ output cuts. Brent oil prices depreciated by c.0.62% to $86.27pb, day-on-day, while WTI depreciated by c 0.49% day-on-day to settle at US$82.79pb. Spot Gold depreciated by c.-0.30% day-on-day to close at US$1,940.40 per ounce as of report time.
Outlook:We expect oil prices to remain elevated in the interim.
