FIXED INCOME MARKETS
MONEY MARKETS
Opening system liquidity stayed negative today. However, the Open Repo Rate (OPR) eased by 14 bps to 31.47%, while the Overnight Rate (O/N) decreased by 26 bps to 32.19%.
Outlook: We expect interbank rates to remain elevated tomorrow.
Treasury Bills
The treasury bills market closed bearish today, due to the selling interests around the belly and long end of the curve. Thus, the average mid-rate rose by 35 bps to 22.19% across the benchmark papers.
Outlook: We expect bearish bias to persist.
FGN Bonds
The local FGN bonds market traded cautiously, albeit, with a bearish undertone. The average mid-yield increased by 3 bps to 19.20%.
Outlook: We expect market to stay bearish in the interim.
Equities
The Nigerian equity market closed on a bullish note, with the All-Share Index increasing by 0.30% to 99,966.28 points. The year-to-date return and market capitalization settled at 33.69% and ₦56.61 trillion, respectively. GTCO led both the volumes and values chart with 66.90 million units and ₦3.06 billion.
Outlook: We expect the mixed sentiment to persist.
Foreign Exchange
Naira depreciated against the USD by 0.86% to $/₦1,577.29.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds had a mixed trading session today ahead of Jerome Powell’s speech. Nigeria and Angola papers settled bearish, while Ghana and Egypt had a bullish sentiment. Consequently, the average mid-yield for the Nigerian curve increased slightly by 1 bps to 9.63%..
Outlook: We expect the market to respond to any significant changes in US retail sales data tomorrow.
Commodities
Oil prices fell for a second day on Monday as the dollar gained ground amid political uncertainty in the U.S. following an attack on U.S. presidential candidate Donald Trump, while investors eyed the progress of talks for a Gaza ceasefire. As a result, Brent prices decreased by 0.19% to $84.87, while WTI prices increased by 0.35% to $81.94. Additionally, gold prices rose by 0.51% to $2,432.80 per ounce at the time of this report.
Outlook: We expect the volatility to persist.
