FIXED INCOME MARKETS
Money Markets
Opening system liquidity decreased to ₦193.20 billion long, depicting 35.23% compared to the value recorded yesterday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 230bps and 160bps to 7.30% and 2.60%, respectively.
Outlook: We expect the interbank rates to expand further tomorrow, as bond auction settlement should dampen liquidity
Treasury Bills
The treasury bills market stayed calm in today’s session, in the absence of any jitters. Despite occasional offers, average yield closed flat.
Outlook: We expect the quietness to persist, alongside a bearish backdrop
FGN Bonds
Activity in the local bonds market was relatively quiet. Offers were mostly seen on the short and long ends of the curve, but on a less aggressive note, especially on the 2027, 2028 and 2053 papers. Average yield expanded by 21bps to 13.95%.
Outlook: We expect the market to exhibit a bearish posture in the interim
Eurobonds
The bearish performance lingered in the Nigeria’s Eurobonds papers, as market continued to bake the effective value of external reserve, taking cognisance of the huge debts in foreign currencies. The tail end of the curve touched 12% during today’s session and average yield settled higher at 11.56%, adding 51bps to yesterday’s closing average
Outlook: We expect the selling interest to linger tomorrow.
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI depreciated by c.0.17%, to settle at 64,928.98 points, while year-to-date return settled at c.26.69%. Selling interests in UNILEVER (7.05%), and ACCESSCORP (1.17) drove the negative performance today. All Indices closed in the red. The NGX Banking and Industrial Indices depreciated by 0.08% and 0.06%, respectively. While the NGX Consumer Goods and Oil & Gas Indices lost 0.68% and 0.40%, respectively. TRANSCORP led both the volume charts with 36.47 million units while MTNN led the value charts with ₦972.33 million.
Outlook: We expect the bearish sentiment to linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦774.77, compared with $/₦744.41 recorded yesterday.
Outlook: We expect rates to remain volatile in the interim.
Commodities
Oil prices edged lower today on sluggish Chinese economic figures coupled with fears that Beijing’s unexpected cut in key policy rates was not sufficiently substantial to rejuvenate the country’s sputtering post-pandemic recovery. Brent oil prices depreciated by c.1.55% to $84.87pb, day-on-day, while WTI depreciated by c 1.81% day-on-day to settle at US$81.02pb. Spot Gold depreciated by c.-0.23% day-on-day to close at US$1,936.60 per ounce as of report time.
Outlook:We expect oil prices to remain elevated in the interim.
