FIXED INCOME MARKETS
Money Market
System liquidity declined by 44.36% to ₦237.90 billion compared to ₦427.54 billion recorded yesterday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 13bps and 5bps to 15.46%, and 16.00%, respectively.
Outlook: We expect the interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market was filled with buyside interests, with most of the demand skewed to the short and long-dated maturities. Thus, the market average mid-rate shed c. 141bps to settle at 6.93%.
Outlook: We expect the bullish theme to persist.
FGN Bonds
Similarly, the FGN local bonds market witnessed a bullish theme, with the bulk of the buying interest observed across the 2033s, 2037s, 2038s and 2053 papers. At the closing bell, the average mid-yield fell by 20bps to 14.58%.
Outlook: We expect the bullish atmosphere to remain in tomorrow’s session.
Eurobonds
The Eurobonds market continued to suffer losses, as more selloffs were observed across the major African curves, reflecting market contemplation on the timing of Fed’s rate cut, even as the market anticipates the release of the last FOMC meeting minutes for guidance. As a result, the Nigerian curve witnessed average mid-yield increased by 35bps to settle at 10.05%.
Outlook: We expect tomorrow’s market performance to be mostly swayed by the interpretation of the last FOMC meeting minutes.
Equities
The Nigerian Equity market sustained its bullish theme, as players bought into yesterday’s pull back in the banking index – UBA (+10.00%), ACCESSCORP (+9.98%), and FIDELITYBK (+9.65%) – while buyside interests lingered on other bellwether tickers in the oil & gas and consumer goods sector. Evidently, the ASI appreciated by 2.04%, settling at 77, 537.57 points, while YTD return settled at 3.70%, with total market capitalization at ₦42.43 trillion. Trading activity was positive, as total volume increased by 79.83%, while total value traded increased by 91.83%.
FIDELITYBK led the total volume chart with 108.11 million units, while UBA topped the value chart with ₦1.54 billion. All Indices closed in the green. The Banking and Industrial Indices gained 6.66% and 0.31%, while the Consumer Goods and Oil & Gas Indices increased by 2.42% and 1.89%, respectively.
Outlook: We expect the bullish bias to persist.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 4.72% (or ₦46.66) to $/₦1,035.12 from $/₦988.46 recorded yesterday.
Outlook: The volatility is expected to persist in the interim.
Commodities
Oil prices rose today after reports of a disruption to Libya’s top oilfield added to supply concerns emanating from tensions in the Red Sea. Brent crude was reported at $78.14 per barrel, and West Texas Intermediate (WTI) at $72.59 per barrel, as at printing time. Gold prices increased to $2,043.80 per ounce from the previous day, as of printing time.
Outlook: We expect oil prices to remain volatile in the interim.
