FIXED INCOME MARKETS
Money Market
System liquidity slipped by 44.68% to ₦338.53 billion compared to ₦611.98 billion recorded last week Friday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 89bps and 106bps to 15.75%, and 16.35%, respectively.
Outlook: We expect Interbank rates to ease in the interim, as expected FAAC credits should further boost liquidity in the system.
Treasury Bills
The treasury bills market traded calmly, due to players focus on today’s auction. Although, some buyside interests spilled around the short-dated papers at a less aggressive pace. As a result, the average mid-rate settled at 8.33%.
Outlook: We expect rates to adjust downwards in the secondary market, based on the result of today’s auction.
FGN Bonds
The FGN local bonds market was relatively bullish in today’s market, as investors continued to lock in maturities at high yield levels. Moreso, buying interests were mostly seen on the 2038 and 2053 papers. Thus, the average mid-yield dipped marginally by 1bp to 14.81% at the closing bell.
Outlook: We expect a similar session tomorrow.
Eurobonds
The Eurobonds market witnessed a bullish theme across most African sovereign papers, as market players continue to trade the dovish Fed narrative. Overall, the Nigerian’s curve closed lower, as average mid-yield declined by 13bps to settle at 9.47%.
Outlook: We expect the bullish bias to sustain tomorrow.
Equities
The Nigerian All-Share Index declined by 0.34%, to settle at 73,768.64 points in today’s session, driven by profit taking across several tickers, including STANBIC (-6.01%), NESTLE (-2.65%) and OANDO (-1.85%). Thus, YTD performance settled at 43.94%, nudging the total market capitalization at ₦40.38 trillion. Trading activity was mixed, as total volume increased by 2.27%, while total value traded fell by 21.99%.
Further, the total volume and value traded were led by JAIZBANK with 35.38 million units and GEREGU ₦6.06 billion. The Banking and Oil & Gas Indices increased by 0.17% and 0.24%, respectively, while the Industrial and Consumer Goods Indices fell by 1.10% and 0.15%.
Outlook: We expect a similar session tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) appreciated by 1.50% (or ₦13.29) to $/₦872.59 from $/₦885.88 recorded last week Friday.
Outlook: The volatility is expected to persist in the interim.
Commodities
Oil prices stabilized today after the previous day’s strong gains as investors monitored Red Sea developments, with some major shippers resuming passage through the trade route despite continued attacks and broader Middle East tensions. Brent crude was reported at $80.42 per barrel, and West Texas Intermediate (WTI) at $74.86 per barrel, as at printing time. Gold prices increased to $2,090.00 per ounce from the previous day, as of printing time.
Outlook: We expect oil prices to remain volatile in the interim.
