FIXED INCOME MARKETS
Money Market
System liquidity opened on a negative note today, at ₦344.34 billion short, compared with ₦450.31 billion short, recorded yesterday. Nonetheless, the Open Repo Rate (OPR) increased by 75bps to 23.50%, while the Overnight Rate (O/N) expanded by 5bps to 23.75%.
Outlook: We expect interbank rates remain elevated in the interim.
Treasury Bills
The treasury bills market was active today, with a lot of buyside activity witnessed on the newly issued 1-year paper (12-Sept-2024) and surrounding long dated papers. This was due to investors who lost at yesterday’s NTB auction trying to recover lost bids. Bids moderated on 12-Sept-2024 from low 12.00% levels to near mid 11.00%.
Outlook: We expect market to sustain its buyside activity, albeit at a slower pace tomorrow.
FGN Bonds
In the local bonds market, it was also a bullish affair across select short, mid and long-dated papers, particularly 2026s, 2033s, 2049s, 2050s and 2053s, as investors look to buy ahead of coupon remits. Overall, the average mid-yield declined by 3bps to 14.37%, day-on-day.
Outlook: We expect to see some cherry-picking tomorrow.
Eurobonds
The Eurobonds market witnessed a bullish rally in today’s session, suggesting expectation for a ‘Hold’ in the next US FOMC meeting. In addition, brent crude oil prices remained elevated and crossed $93pb today. At the ECB Press Conference today, the policy makers raised interest rate by 25bps taking its main refinancing operation to 4.50%, while adding that inflation is expected to stay high for a longer period. Overall, average yield fell by 21bps to settle at 11.06%.
Outlook: We expect to see a mild bullish bias tomorrow, pending any negative market-moving event.
Equities
The Nigerian’s bourse slipped to settle on a bearish note in today’s session. For context, the NGX ASI lost c.0.60%, to settle at 67,347.73 points, while year-to-date return settled at c.31.41%. Buying interests in TRANSCORP (-4.69%) and ZENITHBANK (-2.51%) impacted the negative performance today.
The NGX Banking and Industrial Goods Indices ticked up by 0.68% and 0.09%, while Consumer Goods Index depreciated by 0.28%. The Oil & Gas Index closed flat. UBA (+8.25%) led the volume with 301.03 million units, and as well as the value chart with ₦4.89 billion.
Outlook: We expect market to be less active tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦780.12, compared with $/₦758.12 recorded yesterday.
Outlook: We expect rates volatility to persist.
Commodities
Oil prices stayed high today. Brent oil prices appreciated by c.1.89% to $93.62pb, day-on-day, while WTI appreciated by c. 1.92% day-on-day to settle at US$90.22pb. Spot Gold depreciated by c.0.27% day-on-day to close at US$1,927.30 per ounce as of report time.
Outlook: We expect oil prices to stay elevated.
