FIXED INCOME MARKETS
MONEY MARKETS
Opening system liquidity fell back to a deficit region at -₦79.51 billion from ₦80.71 billion reported last week Friday. Overall, the Open Repo Rate (OPR) increased by 9bps to 29.18%, while the Overnight Rate (O/N) declined by 12 bps to 29.82%.
Outlook: We expect interbank rates to expanded in the interim.
Treasury Bills
The treasury bills market closed bearish today, with average mid-rate increasing by 10bps to 20.62%. Activity was mostly skewed towards the belly and long end of the curve, particularly the February 2025 and May 2025 papers.
Outlook: We expect market to trade cautiously tomorrow.
FGN Bonds
The local FGN bonds market closed relatively flat today at 18.49%. Overall activity was minimal, with few tractions seen on select maturities, particularly the 2050 and 2053 papers.
Outlook: We expect similar session tomorrow.
Equities
The Nigerian stock market ended on a bearish note today as trading momentum remained weak. OANDO gained 9.75% to close at ₦12.95, while FBNH, TRANSCORP, and NB saw losses of 4.69%, 3.88%, and 1.89%, respectively. The market breadth showed a ratio of 1.35x (23 advancers to 17 decliners).
The All-Share Index dropped by 0.18% to close at 99,118.86 points, and the year-to-date return was at 32.56%, with the market capitalization at ₦56.07 trillion. Trading activity was lower than Friday’s with a decrease of 19.45% in total volume and 38.92% in value traded.
The Banking, Consumer Goods, and Industrial Goods Indices declined by 0.84%, 0.06%, and 0.09% respectively, while the Oil & Gas Index remained unchanged. VERITASKAP led the volume charts with 57.95 million units traded, while GTCO topped the value charts with ₦1.88 billion in trades.
Outlook: We expect similar trend tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) appreciated by ₦9.87 (or 0.66%) to $/₦1,476.12 compared to $/₦1,485.99 recorded last week Friday.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds market extended its bullish bias today, with buyside interests jolting across the curve. Meanwhile, the S&P flash PMI for US came in at 51.30 points, from 50.00 points in April, surpassing marker forecast of 50.70 points. By the end of the session, the average mid-yield declined by 4bps to settle at 9.63%.
Outlook: : We expect the bullish bias to linger in the interim, but at a less aggressive pace.
Commodities
U.S. crude oil fell more than 3% today as OPEC+ announced plans to phase out voluntary production cuts totalling 2.2 million barrels per day. Brent crude decreased by 3.33% to $78.41 per barrel, while WTI fell by 3.55% to $74.26 per barrel. The price of gold increased by 0.75% to $2,363.20 per ounce at the time of writing.
Outlook: We expect the volatility to persist.
