FIXED INCOME MARKETS
Money Market
Opening system liquidity settled at ₦282.20 billion, compared with ₦227.13 billion, recorded yesterday. Nevertheless, the Open Repo Rate (OPR) increased by 27bps to 3.07%, while the Overnight Rate (O/N) expanded by 127bps to 3.67%.
Outlook: We expect interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market was quiet today, although it had a slightly bearish undertone, particularly across the long end of the curve. The focus for most players was the NTB auction. Overall, the average mid-rate soared by 17bps to 7.65%, day-on-day.
Outlook: We expect some buyside interests tomorrow, as unmet bids at today’s auction should filter into the secondary market
FGN Bonds
The local bonds was less active today, with a handful of trades noticed on the 2053 paper. Nonetheless, market settled on a bearish note, as average yield increased by 2bps to 14.18%.
Outlook: We expect market activities to maintain similar posture tomorrow.
Eurobonds
The Nigeria’s Eurobond market extended its selloffs in today’s session, due to uncertainties regarding the Presidential Tribunal’s verdict and poorer US service PMI by S&P (50.5 point in August from the preliminary 51 points). Activities in the SSA peers was also bearish. Thus, average yield increased by 9bps to 11.23%.
Outlook: We look forward to the speeches by some US Federal Reserve Officials, which is expected to drive market sentiment tomorrow. This is in addition to the US Initial Jobless Claims data release.
Equities
The Nigerian’s bourse closed on a bearish note, as the NGX ASI lost c.0.07%, to settle at 68,286.28 points, while year-to-date return settled at c.33.24%. Selling interests in DANGSUGAR (-4.96%), and GTCO (-1.77%) drove the negative performance today.
The NGX Banking Index appreciated by 0.27% while the Industrial Goods sector appreciated by 0.17%. In contrast, the Consumer Goods Indices depreciated by 0.82% while the Oil and Gas Index remained unchanged. OANDO led the volume with 83.53 million units, while DANGCEM led the value charts with ₦708.71 million.
Outlook: We expect the bullish sentiment to linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦771.59, compared with $/₦744.97 recorded yesterday.
Outlook: We expect rates to decline in the short-term.
Commodities
Oil prices reversed course after crossing $90.71pb yesterday, as investors shrugged off jitters arising from supply cuts from Saudi Arabia and Russia. Brent oil prices declined by c.0.17% to $89.89pb, day-on-day, while WTI depreciated by c. 0.40% day-on-day to settle at US$86.34pb. Spot Gold depreciated by c.0.52% day-on-day to close at US$1,942.40 per ounce as of report time.
Outlook: We expect oil prices to remain elevated in the interim
