FIXED INCOME MARKETS
MONEY MARKETS

Due to yesterday’s OMO bills auction debit, opening system liquidity fell short today to -₦173.45 billion from ₦296.33 billion. Consequently, the Open Repo Rate (OPR) increased by 115bps to 28.53%, while the Overnight Rate (O/N) increased by 115 bps to 29.47%. 

Outlook: We expect interbank rates to ease slightly tomorrow.

Treasury Bills

The treasury bills market traded on a quiet note albeit with a mixed undertone, as players position for tomorrow’s treasury bills auction, where the DMO would be offering ₦179.36 billion across the three usual tenors. As a result, rates trended higher, and the market closed bearish. Overall, the market’s average yield increased by 2bps to 19.67%.

Outlook: We expect tomorrow’s activity to be centered around the NTB auction.

FGN Bonds

Activity in the local FGN bonds market was less aggressive. Although, buyside interests continued to hover around the 2034, 2038 and 2053 papers. At the end of the trading session, the average mid yield fell slightly by 1 bp to 18.43%. 

Outlook: We expect similar performance tomorrow.

Equities

The Nigerian Equity market traded sideways but settled on a bearish due to the selling interests on FBNH (-9.91%), GTCO (-5.98%) and TRANSCORP (-4.78%) amidst buyside interests on PRESCO (+10.00%). As a result, the All-Share Index lost 0.48%, w/w to close at 98,228.50 points. The year-to-date return and market capitalization settled at 31.37% and ₦55.55 trillion, respectively.

Trading activity was calm, with 0.93% increase in total volume traded and 6.76% decline in total value traded. The Banking and Consumer Goods Index declined by 3.11% and 0.66%, respectively, while Industrial & Oil & Gas flattened. UBA led the total volume charts with 102.23 million units, and the value chart with N2.67 billion.

Outlook: We expect similar trend to resurface tomorrow.

Foreign Exchange

FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by ₦62.36 (or 4.60%) to $/₦1,416.57 compared to $/₦1,354.21 recorded yesterday.

Outlook: We expect volatility to persist in the interim.

Eurobonds

The Eurobond market witnessed a bullish session throughout today, with interest seen across several papers. The Nigerian curve observed significant traction, following Fitch’s recent improved rating of the country’s economy. Accordingly, average mid-yield fell by 20bps to 9.46%. 

Outlook: We expect market to continue to fluctuate in the interim.

Commodities

Oil prices fell today as course of Gaza war remains uncertain, while cease-fire talks hang in the balance. Brent crude decreased by 0.35% to $83.04 per barrel, while WTI has fell by 0.31% to $78.25 per barrel. Gold price declined by 0.34% to $2,323.00 per ounce.

Outlook: We expect the volatility to persist.