FIXED INCOME MARKETS
Money Market
Opening system improved further from yesterday’s balance. Consequently, the Open Repo Rate (OPR) declined by 843 bps to 26.45%, while the Overnight Rate (O/N) decreased by 845 bps to 27.08%.
Outlook: We expect interbank rates hover at similar levels tomorrow.
Treasury Bills
The treasury bills market closed on a bullish note today, as buyers showed interest for several papers across the curve. At the close of market, the average mid-rate across the benchmark NTB papers declined by 52 bps to 23.19%.
Outlook: We expect the bullish sentiment to ease tomorrow.
FGN Bonds
The local FGN bond market closed bearish today, with selling interests on selected papers, especially 2031 and 2033 maturities. As a result, the average mid-yield increased by 9bps to 19.56%.
Outlook: We expect the bearish sentiment to resurface tomorrow.
Equities
The Nigerian stock market concluded on a bearish note with the All-Share Index fall by 0.21% to reach 100,156.96 points. The year-to-date return and market capitalization settled at 33.95% and ₦56.71 trillion, respectively. FIDELITYBK recorded the highest trading volume with 53.42 million units, while ZENITHBANK led the value chart with ₦1.46 billion.
Outlook: We expect the bearish theme to linger.
Foreign Exchange
Naira depreciated against the USD by 1.08% to $/₦1,603.80.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds market maintained its bearish theme across all regions. Consequently, the average mid-yield for the Nigerian papers increased by 7 bps to 10.03%. Meanwhile, the US GDP growth rate increased at 2.80% in Q2’24, higher than 2.00% market forecast and 1.40% in Q1’24.
Outlook: We expect market to US PCE Price Index to partly influence sentiments tomorrow.
Commodities
The price of crude oil increased after the second-quarter economic growth for the US came in stronger than expected. Brent prices rose by 0.34% to $81.99, while WTI prices increased by 0.59% to $78.05. Furthermore, the price of gold fell by 2.55% to $2,354.10 per ounce.
Outlook: We expect the volatility to persist.
