FIXED INCOME MARKETS
MONEY MARKETS
The opening system liquidity declined slightly to -₦909.89 billion from -₦885.92 billion seen yesterday. Nonetheless, the Open Repo Rate (OPR) fell by 61bps to 29.35%, while the Overnight Rate (O/N) increased by 58bps to 31.33%.
Outlook: We expect interbank rates to remain elevated tomorrow.
Treasury Bills
Today, the treasury bills market experienced minimal activity, with investors primarily directing their attention towards the NTB primary market auction. As a result, the average mid-rate remained stable at 20.77%.
Outlook: We expect overall activity to remain calm, with mixed sentiment across the curve.
FGN Bonds
The FGN local bonds market witnessed a mixed to bullish session. Buying interest was particularly notable in the Feb 2034 paper, although there was some slight selling activity in the short-dated papers. As a whole, the market saw a decrease in the average mid-yield by 4 basis points, closing at 18.64%.
Outlook: We anticipate similar trading activity tomorrow.
Eurobonds
The African Eurobond market opened with weakness, experiencing fluctuations throughout today’s session. However, by the session’s close, the market trended downward, exhibiting a bearish sentiment across the curve. Consequently, the average mid-yield on Nigerian Eurobonds rose by 13 bps to reach 9.83%.
Outlook: We expect tomorrow’s activity to be impacted by the US GDP and Initial Jobless claim data.
Equities
The Nigerian Equity market closed bearish today, driven by the selling interests on MTNN (-10.00%), FBNH (-9.82%) and UBA (-1.30%). Moreso, the All-Share Index lost 1.20% to settle at 98,121.30 points. Also, the year-to-date return and market capitalization settled at 31.22% and ₦55.49 trillion, respectively.
The Banking and Oil & Gas Indices shed 0.83% and 1.41%, respectively, while Industrial and Consumer Goods Indices increased by 0.02% and 0.05%. GTCO led both the total volume charts with 81.41 million units and total value chart with ₦2.93 billion in value.
Outlook: We expect the mixed sentiment to linger in the interim.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by ₦8.37 (or 0.64%) to $/₦1,308.52 compared to $/₦1,300.15 recorded yesterday.
Outlook: We expect volatility to linger.
Commodities
Crude oil prices edged lower today after Iran said it will not escalate the conflict with Israel. Brent crude lost by 0.61% to $86.76 per barrel, while WTI declined by 0.17% fell by $83.00 per barrel. In similar fashion, the price of gold fell by 2.56% to $2,352.60 per ounce.
Outlook: We expect the volatility to persist.
