FIXED INCOME MARKETS
Money Market
Opening system increased by c.51.13% from ₦426.43 billion to ₦644.48 billion today. Although, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 66bps and 68bps to 16.21%, and 16.68%, respectively.
Outlook: We expect the interbank rates to stay elevated.
Treasury Bills
The major focus today in the Treasury bills space was the NTB primary market auction. However, there were few selling interests across select maturities. Overall, the average mid-rate increased marginally by 1bp to close at 9.47%.
Outlook: Market is expected to be impacted by the NTB auction result.
FGN Bonds
The local bonds market was slightly active today, with mild buying interests observed mostly on the 2038 and 2053 papers. Overall, average mid-yield flattened at 15.79%.
Outlook: We expect market players to stay on the sideline in the interim.
Eurobonds
The Eurobonds market continued to enjoy some bullish rally, both in the SSA and North African region. Notably, the bullish bias in the SSA curve intensified after the US ADP Employment data printed lower than expectation at 103k (Est. 128k) in November, from 106k in October. Consequently, Nigerian papers closed on a bullish note, as average mid-yield declined by 9bps to 10.29%.
Outlook: We expect the bullish sentiment to persist, subject to any significant surprises from major economic indicators.
Equities
The Nigerian stock market registered a bullish theme today, with a +0.78% to 71,808.64 points, while the YTD performance touched 40.11%, contributing to a total market capitalization of approximately ₦39.29 trillion. The buying interests on major banking names like FBNH (+9.91%), ACCESSCORP (+9.04%) and ZENITHBANK (+3.44) inspired the optimism. Trading activity was positive, as total volume and value trades increased by 59.15% and 8.88%, respectively.
Further, the total volume and value traded were both led by GTCO with 76.70 million units and ₦3.04 billion. All Indices closed in the green except Oil & Gas Index which flattened. The Banking Index appreciated by 5.01%, while the Industrial and Consumer Goods Indices depreciated by 0.02%, and 0.11%, respectively.
Outlook: We expect a similar trend tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 17.91% (or ₦144.49) to $/₦951.22 from $/₦806.73 recorded yesterday.
Outlook: The volatility is expected to persist in the interim.
Commodities
Oil prices fell today, as investors weighed the effectiveness of an extension in OPEC+ cuts in tightening supply against a worsening demand outlook in China. Brent crude was reported at $75.75 per barrel, and West Texas Intermediate (WTI) at $70.75 per barrel, as at printing time. On the flip side, Gold prices inched higher, buoyed by lower bond yields, while investors awaited for a crucial U.S. employment report that could set the tone for Federal Reserve’s policy meeting next week. Gold prices increased to $2,047.10 per ounce from the previous day.
Outlook: We expect oil prices to remain volatile in the interim.
