FIXED INCOME MARKETS
Money Market
Opening system liquidity improved today, driven by inflows from FAAC and FGN bond coupons. Accordingly, the Open Repo Rate (OPR) declined by 605 bps to 25.34%, while the Overnight Rate (O/N) decreased by 621 bps to 25.81%.
Outlook: We expect interbank rates to decline further tomorrow.
Treasury Bills
The treasury bills market closed on a bearish note today, with selling interest across several papers. As a result, the average mid-rate across the benchmark NTB papers increased by 43 bps to 23.13%.
Outlook: We expect the CBN interest rate decision to impact market sentiment tomorrow.
FGN Bonds
The domestic FGN bond market concluded on a bearish note, following the expectation of an uptick in stop rates at today’s auction. Overall, the average mid-yield rose by 13 bps to 19.43%.
Outlook: We expect the CBN interest rate decision to impact market sentiment tomorrow.
Equities
The Nigerian stock market ended on a bullish note. The All-Share Index rose by 0.03% to reach 100,568.60 points. The year-to-date return and market capitalization concluded at 34.50% and ₦56.95 trillion, respectively. ELLAHLAKES had the highest trading volume at 110.68 million units, while UCAP topped the value chart at ₦778.61 billion.
Outlook: We expect a cautious trading activities tomorrow
Foreign Exchange
Naira appreciated against the USD by 6.05% to $/₦1,500.32.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds market witnessed a bullish bias today, with buying interests across the curve. Thus, the average mid-yield for the Nigerian curve decreased by 2 bps, to 9.89%.
Outlook: We expect the bearish trend to linger tomorrow.
Commodities
Today, oil prices declined, as investors looked past U.S. president Joe Biden’s decision not to seek a second term and focused on rising stockpiles and signs of weak demand. Brent prices declined by 0.25% to $82.42, while WTI prices fell by 0.09% to $80.06. Also, the price of gold declined by 0.26% to $2,392.60 per ounce.
Outlook: We expect the volatility to persist.
