FIXED INCOME MARKETS
MONEY MARKETS

The opening system liquidity showed a relative improvement, moving from a deficit of ₦1,010.82 billion to a deficit of ₦885.92 billion. In terms of rates, the Open Repo Rate (OPR) saw a 7 bps increase, reaching 29.96%, whereas the Overnight Rate (O/N) experienced a decrease of 21 bps, settling at 30.75%.

Treasury Bills

Today, the treasury bills market saw subdued activity, characterized by slight buying interests in specific papers, particularly those with longer maturity dates. However, the market sentiment was predominantly bearish, with participants expecting slightly higher rates at tomorrow’s NTB auction. Consequently, the average mid-rate rose by c.126 bps to 20.77%. 

Outlook: We expect investors to shift their attention to tomorrow’s primary market auction where the DMO will be offering c.N142.57 billion worth of treasury bills.

FGN Bonds

The FGN local bonds market exhibited a bullish bias, albeit with less intensity. Buying interests were concentrated primarily around the Feb 2034, 2038, and 2053 maturities, among others. Despite the prevailing bullish sentiment, the market concluded with little change, as the average mid-yield remained unchanged at 18.68%. 

Outlook: We anticipate similar activity tomorrow.

Eurobonds

The Eurobond market opened the session with a slight weakness and mixed performance across the region. As the trading session progressed, the market leaned towards a bullish stance. However, in the case of Nigeria, the market retraced its gains and turned bearish by the end of the session. Consequently, the average mid-yield on Nigerian Eurobonds rose by 5 basis points, ending the session at 9.69%.  

Outlook: We expect tomorrow’s session to stay mixed.

Equities

The Nigerian Equity market slumped back to a bearish theme, bolstered by selling interests on TRANSCORP (+3.47%) and UBA (+0.66%). Moreso, the All-Share Index lost 0.28% to settle at 99,311.54 points. Also, the year-to-date return and market capitalization settled at 32.82% and ₦56.17 trillion, respectively.
The Banking and Consumer Indices shed by 2.94% and 0.80%, respectively, while Industrial Goods index increased by 0.30%, sponsored by WAPCO (+7.46%). TRANSCORP led both the total volume charts with 125.70 million units and total value chart with ₦1.89 billion in value.

Outlook: The expect the mixed sentiment to persist tomorrow.

Foreign Exchange

FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by ₦66.66 (or 5.32%) to $/₦1,300.15 compared to $/₦1,234.49 recorded yesterday.

Outlook: We expect volatility to linger.

Commodities

Today, U.S. crude oil prices climbed amid optimism that disappointing manufacturing data might prompt interest rate cuts. Brent crude rose by 0.74% to reach $87.64 per barrel, while WTI surged by 0.83% to $82.59 per barrel. However, the price of gold declined by 0.49% to $2,334.80 per ounce.

Outlook: We expect the volatility to persist.