FIXED INCOME MARKETS
Following some statutory CRR deductions, the opening system liquidity declined by 55.62% to ₦572.69 billion from ₦1.29 trillion yesterday. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) fell by 110bps and 100bps to 1.20% and 2.00%, respectively.
Outlook: We expect the interbank rates to hover at similar levels tomorrow.
Bargain hunting in the treasury bills space was sustained in today’s trading session. Buy interests scouted for short-dated papers with a few on the longer maturities. As such, the average mid-rate declined 18bps to settle at 6.77%.
Outlook: We expect the buying interests to ease tomorrow.
Activity in the FGN bonds market was quietly mixed, as participants showed interests on several papers. At the close of market, the average mid-yield increased by 4bps to 14.31%.
Outlook: We expect market to stay quiet tomorrow.
The Eurobonds market started today’s session with weaker bearish bias across the curve. After the lower-than-expected initial jobless claims, report broke out, market eased with mild buying interests. The US Initial Jobless claims data was less of a strong market catalyst as actual data printed at 207k from the previous 205k, while market forecasted 210k. As a result, the average yield increased by 1bps to 12.35%.
Outlook: Tomorrow’s key market-moving event is expected to be the US Job Report. As at writing time, market expects the US to have added 170k jobs in September, from 187k jobs in August.
The Nigerian’s equity market returned to its bullish bias today, as the ASI gained by 0.13% to settle at 66,570.19 points, while year-to-date return settled at c.29.89. The buying interests seen on NASCON (+5.69%) and OANDO (+5.29%) impacted the bullish bias today.
The NGX Banking, Industrial and Consumer Goods Indices appreciated by 0.44%, .03% and 0.36%, respectively. While the Oil & Gas Index stood flat. OANDO led both the volume and value charts with 75.15 million units and ₦771.24 billion, respectively.
FMDQ’s Investors and Exporters (I&E) exchange rate depreciated to $/₦775.20, compared to $/₦756.21 recorded yesterday.
Outlook: We expect rates volatility to persist.
Oil prices declined today, extending the previous session’s losses as an uncertain demand outlook overshadowed an OPEC+ panel meeting deciding to maintain oil output cuts to keep supply tight. Brent crude oil prices depreciated by 1.96% to $84.13 per barrel, while West Texas Intermediate (WTI) declined by 1.97% to US$82.56 per barrel as of writing time. In contrast, Spot Gold depreciated 0.34% to US$1,828.60 per ounce at the time of this report.
Outlook: We expect oil prices to stay elevated.