FIXED INCOME MARKETS
Money Market
Opening system improved to a positive balance today. Nonetheless, the Open Repo Rate (OPR) increased by 363 bps to 34.88%, while the Overnight Rate (O/N) increased by 362 bps to 35.53%.
Outlook: We expect interbank rates stay elevated tomorrow.
Treasury Bills
The treasury bills market closed on a bearish note today, reflecting market expectation for an uptick in stop rates at today’s NTB auction. At the close of market, the average mid-rate across the benchmark NTB papers increased by 15 bps to 23.71%.
Outlook: We expect activity to be impacted by today’s NTB auction result.
FGN Bonds
The local FGN bond market was relatively quiet today. Consequently, the average mid-yield remained unchanged at 19.46%.
Outlook: We expect a similar trading session tomorrow.
Equities
The Nigerian stock market concluded on a bearish note with the All-Share Index decreasing by 0.12% to reach 100,365.17 points. The year-to-date return and market capitalization settled at 34.23% and ₦56.83 trillion, respectively. FCMB recorded the highest trading volume with 133.92 million units, while ZENITHBANK led the value chart with ₦2.19 billion.
Outlook: We expect the mixed bias to persist.
Foreign Exchange
Naira depreciated against the USD by 2.45% to $/₦1,586.71.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds market closed on a bearish note today. Thus, the average mid-yield for the Nigerian curve increased by 18 bps to 9.96%.
Outlook: We anticipate that focus will be on the US GDP growth rate for Q2’24. As of the current time, the market anticipates the US GDP to increase to 2.10% from 1.40%.
Commodities
The price of crude oil rebounded today, ending a three-day decline. Brent prices rose by 1.07% to $81.88, while WTI prices increased by 1.16% to $77.85. Furthermore, the price of gold went up by 0.65% to $2,422.60 per ounce.
Outlook: We expect the volatility to persist.
