FIXED INCOME MARKETS
Money Market
System liquidity improved to a positive level as it opened at ₦51.76 billion long, compared with yesterday’s opening balance of -₦172.43 billion. Consequently, the Open Repo Rate declined by 610bps to 16.00%, and the Overnight Rate fell by 590bps to 17.00%.
Outlook: We expect rates to remain at similar levels tomorrow.
Treasury Bills
The treasury bills market was partially active, as players showed interests at the long end of the curve, although less aggressively. As a result, the average mid-yield declined by 43bps to settle at 13.05%.
Outlook: We expect activity to be cantered around the NTB auction tomorrow.
FGN Bonds
The FGN local bonds market witnessed a mixed trend with most selling interests around the short-dated papers and buying interests at the long end of the curve. Overall, the average mid-yield increase by c.10bps to close at 16.54%.
Outlook: We expect a cautious trading activity tomorrow.
Eurobonds
The Eurobonds market endured a mixed to bullish theme, with buyside activity witnessed across the Nigerian curve, while sideways interests were observed across Angola, Ghana, and Egypt papers. Overall, the Nigeria’s average mid-yield fell by 15bps to settle at 9.79%.
Outlook: We expect the speaking engagement of members of the Federal Reserve to continue to impact the market, subject to country-specific jitters.
Equities
The Nigerian bourse closed bearish today, with several tickers losing to the bears. Thus, the ASI declined 1.50% to settle at 102,108.05 points while the year-to-date return declined to 36.56% and total market capitalization printed at ₦55.87 trillion.
Trading activity was negative, with a 41.28% decline in total volume and a 60.70% decline in total value. JAIZBANK led the volume chart with 90.78 million units while GTCO led the value charts with ₦1.32 billion. The Banking, and Industrial Indices declined by 2.27% and 3.79%, respectively, while the Industrial and Consumer Goods Indices lost 3.79% and 0.22%, respectively. The Oil & Gas Index closed flat.
Outlook: We expect a similar momentum tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 0.99% (or ₦14.03) to $/₦1,433.89 from $/₦1,419.86 recorded yesterday.
Outlook: We expect the volatility to persist.
Commodities
Oil prices rose today as investors weighed efforts to negotiate a truce in Gaza against a U.S. vow to take further action against militants in the Middle East. Brent crude was reported at $78.26 per barrel, and West Texas Intermediate (WTI) at $73.04 per barrel, as at printing time. Gold increased to $2,050.90 per ounce as of printing time.
Outlook: We expect geopolitical tensions to continue to weigh on crude oil prices.
