FIXED INCOME MARKETS
Money Market
As a result of the coupon inflows observed today, the overall system liquidity opened the trading session on a favourable footing, amounting to c.₦110.77 billion in excess, in contrast to the deficit of ₦317.53 billion registered the previous Friday. The Open Repo Rate (OPR) exhibited a noteworthy decline of 781 basis points, settling at 15.83%, while the Overnight Rate (O/N) saw a substantial drop of 771 basis points, concluding the session at 16.71%.
Outlook: We expect interbank rates hover around similar levels tomorrow.
Treasury Bills
The Treasury bills market displayed a subdued performance today, with limited buying interest evident across the yield curve. Consequently, the average mid-rate stabilized at 7.45%.
Outlook: We expect similar trend tomorrow.
FGN Bonds
The domestic bond market experienced a tranquil trading day, characterized by limited demand for specific securities. Consequently, the average yield registered a marginal decrease of 2 basis points, settling at 14.31% on a day-to-day basis.
Outlook: We expect to see some cherry-picking tomorrow.
Eurobonds
Trading in the Nigerian and Angolan Eurobonds markets displayed a bearish sentiment today, driven by heightened anticipation surrounding the upcoming interest rate decision by the US Federal Reserve later this week. In contrast, Ghana’s yield curve remained relatively subdued, following an announcement by the Finance Minister indicating that the debt restructuring agreement for external creditors is expected to be finalized by year-end. Overall, average yield increased by 6bps to settle at 11.14%.
Outlook: We expect activities to remain subdued tomorrow.
Equities
The Nigerian’s bourse closed on a bullish note in today’s session as the NGX ASI appreciated c.0.80%, to settle at 67,877.17 points, while year-to-date return settled at c.32.44%. Buying interests in UBA (+8.51%) and AIRTELAFRI (+1.60%) impacted the positive performance today.
The NGX Banking and Consumer Goods Indices ticked up by 1.91% and 0.53%, while Industrial Goods and Oil & Gas Indices depreciated by 0.14% and 2.18%, respectively. UBA led the volume with 109.47 million units, while AIRTELAFRI led the value chart with ₦2.72 billion.
Outlook: We expect market to be less active tomorrow.
Foreign Exchange
FMDQ’s Investors and Exporters (I&E) exchange rate experienced a depreciation, declining to $/₦773.98, as compared to the previous Friday’s rate of $/₦759.91.
Outlook: We expect rates volatility to persist.
Commodities
Crude oil prices maintained their upward trajectory primarily due to constrained supply dynamics. Brent crude oil prices exhibited a modest gain of approximately 0.44%, reaching $94.35 per barrel on a day-to-day basis, while West Texas Intermediate (WTI) saw a more substantial increase of about 1.73%, settling at US$91.41 per barrel. In contrast, spot Gold experienced a slight depreciation of approximately 0.05% on the day, concluding at US$1,945.10 per ounce at the time of this report.
Outlook: We expect oil prices to stay elevated.
