FIXED INCOME MARKETS
Money Market
Opening system declined by c.14.47% to ₦146.62 billion from ₦171.43 billion recorded yesterday. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) expanded by 145bps and 198bps to 17.19%, and 18.19%, respectively.
Outlook: We expect the interbank rates to hover at similar levels tomorrow.
Treasury Bills
Given today’s auction, activity in the secondary market was quite calm, with a few sell interests noticed on the long-dated papers amid expectation of the auction closing higher than current market levels. As a result, the average mid-rate increased by 34bps to 9.67%.
Outlook: We expect the direction of tomorrow’s activities to dictated by the auction result.
FGN Bonds
The local bonds market experienced a mixed to bullish sentiment today, with most activities largely seen on 2029, 2037, and 2053 papers. Overall, the average mid-yield rate declined by c.4bps to 15.07%.
Outlook: We expect market to trade sideways in the interim.
Eurobonds
Ahead of interest rate decision by the US Federal Reserve today, market expressed a bullish sentiment, with expectation for a “Hold” stance. Although, activity was less aggressive among the SSA papers, except Ghana’s curve will selling interest towards the end of the session. Overall, market settled on a bullish note, as average mid-yield fell by 6bps to settle at 10.33%.
Outlook: We expect the bullish bias to persist, albeit, on a less aggressive pace.
Equities
Bullish rally in the banking names drove market to close on a bullish note. Precisely, ACCESSCORP (+8.09%), FBNH (+4.97%) and UBA (+3.45%) were the major drivers. The ASI appreciated by 0.55% to 72, 299.79 points, while the YTD performance settled at 41.07%, contributing to a total market capitalization of approximately ₦39.56 trillion. Trading activity was positive, as total volume increased by 35.56%, while total value traded increased by 37.40%.
Further, the total volume and value traded were led by ACCESSCORP with 60.18 million units and GTCO ₦1.96 billion. The Banking and Industrial Indices appreciated by 3.42% and 0.01%, respectively, while the Consumer Goods and Oil & Gas Indices fell by 0.18% and 0.20%, respectively.
Outlook: We the bullish bargain to resurface tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 4.58% (or ₦39.62) to $/₦904.65 from $/₦865.03 recorded yesterday.
Outlook: The volatility is expected to persist in the interim.
Commodities
Oil were steady today, after falling by more than 3% to six-month lows on oversupply and demand concerns. Brent crude was reported at $73.91 per barrel, and West Texas Intermediate (WTI) at $69.22 per barrel, as at printing time. Gold extended gains today, as subdued Treasury yields boosted the bullion’s appeal, while investors awaited the outcome of U.S. Federal Reserve’s meeting for cues to its monetary policy outlook. Thus, Gold prices increased to $1,998.30 per ounce from the previous day, as of printing time.
Outlook: We expect oil prices to remain volatile in the interim.
