Money Markets

Given the drought in major inflows, opening system liquidity slid to a negative territory at ₦280.63 billion short, from ₦215.74 billion last week Friday. Consequently, the Open Repo Rate (OPR)  and Overnight Rate (O/N) expanded by 406bps and 541bps to 24.25% and 25.20%, respectively.

Outlook: We expect interbank rates to decline next week, as FAAC monthly credit should bolster system liquidity.

Treasury Bills

The treasury bills market started the week (pre-auction) with weak buyside interests on selected papers. At the auction, the DMO offered and sold c.₦303.22 billion across 3 tenors. The stop rates for the 91, 182 and 364-day papers increased by 19bps, 210bps and 417bps to 5.19%, 8.00% and 13.97% respectively, compared to the previous auction. The bid/cover ratio of 5.09x meant that the auction was met with enthusiasm. Furthermore, post-auction market sentiments was bullish, as ample demand was observed on the newly issued 1-year paper. Overall, the average mid-rate increased by 95bps to 7.94%, week-on-week.

Outlook:  We expect bargain hunting to continue next week, on the back of expected liquidity inflows coupled with attractive rates across tenors.

FGN Bonds

Activity in the local bonds market was mixed in the first half of the week, although, less aggressive. Afterwards, market stayed quiet, with a bearish undertone observed on some papers. Overall, average yield increased by 16bps to 14.13%, week-on-week.

Outlook: We expect to see some cherry-picking next week, albeit, on a less aggressive note.


The Eurobonds market extended its bullish momentum this week, save for today, as market reacted swiftly to Powell’s hawkish speech at the Jackson Hole Symposium today, in addition to jitters from the massive expansion of the BRICS with key oil producing countries. Nevertheless, market settled bullish, as average yield lost 22bps to 10.91%, week-on-week.

Outlook: We expect the bearish bias linked to Powell’s speech to dissolve at early next week, while market cautiously watch out for other economic indicators like the US GDP, PCE Price Index and employment data towards the end of the week.  


The Nigerian equity market closed on a bullish note, week on week, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c 1.29% to close at 65,558.91 points, while year-to-date return settled at c 27.92%. Buying interest on DANGSUGAR (+35.71%), and BUAFOODS (+17.94%) drove the positive trend this week. The NGX Consumer Goods Index appreciated by 11.58. While the NGX Banking, Industrial, and Oil & Gas Indices depreciated by 3.57%, 0.25%, and 1.69%, week-on-week. TRANSCORP led the volume charts with 444.20 million units while MTNN led the value charts with c. ₦ 9.18 billion, this week.

Outlook: We expect a mixed activity next week.

Foreign Exchange

FMDQ’s I & E rate depreciated by ₦38.90 (5.26%) to $/₦778.42 compared to $/₦739.52 recorded last week.

Outlook: We expect the volatility to persist next week.


Oil prices heads towards a bearish close, due to downbeat in China’s economy, disappointing US PMI data and persisted hawkish comment by Fed’s Chair, Jerome Powell, at the Jackson Hole symposium this week. As of writing time, brent oil prices depreciated by c. 0.80% to $84.12 per barrel, week-on-week, while WTI depreciated by c 1.87% week-on-week to settle at US$79.73pb. Spot Gold appreciated by c. 0.90% to US$1,933.8 per ounce as of report time.

Outlook: We expect the bearish sentiment to phase off next week.