FIXED INCOME MARKETS
Money Markets
Opening system liquidity decreased to ₦33.55 billion long, compared to ₦191.21 billion recorded yesterday, due to the FGN bond auction settlement that took place today. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 1,176bps and 1,124bps to 19.06% and 19.64%, respectively.
Outlook: We expect the interbank rates to remain at its double-digit levels tomorrow.
Treasury Bills
The treasury bills market was bearish today, with selling interests across the curve, especially August 8 (2024) paper. As a result, average yield increased by 33bps to 7.54%.
Outlook: We expect a similar trend to persist today.
FGN Bonds
The local bonds market was bearish today, albeit, on a less aggressive note. Most of the activity was skewed to the long end of the curve. Thus, the average mid-yield increased by 6bps to 14.01%.
Outlook: We expect the bearish bias to linger tomorrow
Eurobonds
The Nigeria’s Eurobonds market started bearish but closed on a positive note, as buyers showed interests for some papers towards the close of today’s session. Ghana papers stayed bearish; Egypt was mixed while Angola papers traded on a positive note. Average yield fell by 14bps to 11.42%.
Outlook: We expect a mixed market tomorrow, as investors digest the details of the US FOMC meeting minutes that will be released later today.
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI dipped by c.0.47%, to settle at 64,625.28 points, while year-to-date return settled at c.26.10%. Selling interests in AIRTELAFRI (5.30%), and GTCO (0.53) drove the negative performance today. The NGX Banking Index closed at 0.44%. While the NGX Consumer Goods and Oil & Gas Index appreciated by 2.42% and 0.36%. GTCO led both the volume charts with 41.75 million units while AIRTELAFRI led the value charts with ₦1.81 billion.
Outlook: We expect the bearish sentiment to linger tomorrow
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦759.86, compared with $/₦774.77 recorded yesterday.
Outlook: We expect rates to remain volatile in the interim
Commodities
Oil and Gold prices ranged today, ahead of the release of the minutes from the Federal Reserve’s July policy meeting, although higher bond yields kept bullion prices near six-week lows. Brent oil prices depreciated by c.0.08% to $84.82pb, day-on-day, while WTI depreciated by c 0.17% day-on-day to settle at US$80.85pb. Spot Gold depreciated by c.-0.03% day-on-day to close at US$1,935.70 per ounce as of report time.
Outlook:We expect oil prices to remain elevated in the interim.
