FIXED INCOME MARKETS
MONEY MARKETS
Opening system liquidity maintained a deficit balance today at c.-₦612.03 billion, from -₦1,593.09 billion recorded yesterday. Consequently, the Open Repo Rate and Overnight Rate increased by c.133 bps and c.155 bps to 28.21% and 29.04%, respectively.
Outlook: We expect the interbank rates to stay elevated.
Treasury Bills
While participants await tomorrow’s NTB auction, market displayed a bearish bias, supporting expectations for higher stop rates. Overall, activity was mild, with a few trades on short-dated treasury bills and OMO bills. Nevertheless, the session closed relatively flat, as average mid-rate remained unchanged at 17.16%.
Outlook: The Stop rates in tomorrow’s NTB auction is expected to close higher as shown in the table below.
FGN Bonds
The FGN local bonds market witnessed a quiet session with a bearish undertone, amid tight liquidity and prospect for higher yields. As a result, average mid-yield stayed relatively flat at 17.55%.
Outlook: We expect the bearish theme to persist tomorrow.
Eurobonds
The Eurobonds market exhibited a mixed theme, but with lesser momentum compared to yesterday’s session due to the absence of major market jitters. At the close of market, Nigeria’s average mid-yield increased by 5bps to close at 9.59%.
Outlook: We expect market attention to be navigated towards US ADP employment data and Jerome Powell’s testimony to the Congress tomorrow.
Equities
The Nigerian equity market was stirred positively due to heavy bargain hunting on the TRANSCORP (+10.00%) and TRANSPOWER (+10.00%). At the end of the session, the All-Share Index (ASI) appreciated by 0.35% to settle at 99,190.46 points, with the year-to-date return settled at 32.65% and total market capitalization valued at ₦56.08 trillion.
Trading activity was mixed with -7.33% and +59.55% in total volume and value traded, respectively. TRANSPOWER led both the volume chart with 87.49 million units and the values chart with ₦25.41 billion. The Banking Index gained 1.14%, while Consumer Goods sector shed 0.84%. Meanwhile, the Industrial and Oil & Gas Indices closed relatively flat.
Outlook: We expect the bullish sentiment to linger tomorrow, albeit less aggressively.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 3.50% (or ₦54.18) to $/₦1,602.43 from $/₦1,548.25 recorded yesterday.
Outlook: We expect the volatility to persist.
Commodities
Oil prices fell as market shrugged off China growth pledge, OPEC+ production cuts. Brent crude reached $82.25 per barrel, while West Texas Intermediate (WTI) stood at $78.31 per barrel at the time of reporting. Gold flirts with record highs as U.S. rate cut bets rise. As of print time, Gold Price hit $2,140.10 per ounce.
Outlook: We expect oil prices to remain elevated.
