FIXED INCOME MARKETS
Money Market
System liquidity slipped by c.₦250.82 billion to open at ₦330.16 billion compared to yesterday’s opening balance. As a result, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 23bps and 30bps to 1.17% and 1.80%, respectively.
Outlook: We expect the interbank rates hover at similar levels tomorrow.
Treasury Bills
The treasury bills market was calm today, as players showed little interest for only a few papers, particularly August and September 2024 bills. At close, market posted a bearish backdrop, as average yield increased by 2bps to 5.89%.
Outlook: We expect a similar performance tomorrow.
FGN Bonds
The local bonds market also witnessed weak activity in today’s session, as interest was only seen on selected papers, particularly the on-the-run maturities. Thus, average yield increased by 6bps to 14.53%.
Outlook: We expect the current trend to persist.
Eurobonds
The Eurobonds market extended its selloffs in today’s trading session, as global headwinds permeate bearish bias on investors’ sentiments. In that regards, average yield advanced by 48bps to 12.60%
Outlook: We expect market to bearish theme to ease tomorrow, as yield levels gradually paves way for the bulls.
Equities
The Nigerian’s equity market closed on a bullish note today, as the ASI appreciated by 0.04% to settle at 67,353.23 points, while year-to-date return settled at c.31.42%. Activity was mixed among the banks. The buying interests on UBA (+1.62%) and ZENITHBANK (+1.21%) supported the bullish bias, despite the selling interest on ACCESSCORP (-1.18%).
The NGX Banking and Oil & Gas Indices appreciated by 0.74% and 0.22%, respectively, while the Industrial Index lost 0.06%. WEMABANK led the volume charts with 88.99 million units while GTCO led the value charts with ₦828.48 million.
Outlook: We expect a mixed bias to persist.
Foreign Exchange
FMDQ’s Investors and Exporters (I&E) exchange rate appreciated by 6.77% to $/₦790.68 from $/₦848.12 recorded yesterday.
Outlook: We expect rates volatility to persist.
Commodities
Global oil prices rose today as the risk of escalating conflict in the Middle East threatened to disrupt oil supplies from the region, with Iran calling for an oil embargo to be imposed on Israel. Brent crude oil prices gained 1.45% to $91.20 per barrel, while West Texas Intermediate (WTI) appreciated by 1.63% to US$88.07 per barrel as of writing time. Similarly, Spot Gold appreciated 1.21% to US$1,959.20 per ounce at the time of this report.
Outlook: We expect oil prices to continue to swing sideways.
