FIXED INCOME MARKETS
Money Market
Opening system liquidity increased today. Consequently, the Open Repo Rate (OPR) declined by 19 bps to 25.39%, while the Overnight Rate (O/N) decreased by 16 bps to 25.87%.
Outlook: We expect interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market closed on a bearish note today, as selling interests persisted across board. Consequently, the average mid-rate across the benchmark NTB papers increased by 42 bps to 23.60%.
Outlook: We expect the bearish trend to resurface tomorrow.
FGN Bonds
The local FGN bond market settled bearish today, despite early mixed interests on selected papers, including the 2031 and 2033 papers. As a result, the average mid-yield increased by 5bps to 19.60%.
Outlook: We expect market to remain bearish.
Equities
The Nigerian stock market closed bearish, as the All-Share Index decreased by 0.31% to reach 97,830.65 points. The year-to-date return and market capitalization settled at 30.84% and ₦55.55 trillion, respectively. ZENITHBANK recorded the highest trading volume with 44.23 million units, as well as the highest value chart with ₦1.51 billion.
Outlook: We expect the bearish theme to persist.
Foreign Exchange
Naira depreciated against the USD by 0.60% to $/₦1,621.12.
Outlook: We expect volatility to persist.
Eurobonds
At the early hours of trading, the Eurobonds market sustained a bearish theme, with selling interests observed across the SSA and North African papers. However, market settled flat, given the influx of some buyers towards the closing bell. Meanwhile, the US consumer confidence printed at 100.3, stronger than both estimate (99.70) and previous data (97.80). Thus, the average mid-yield for the Nigerian papers increased marginally by 1 bp to 10.00%.
Outlook: We expect market to trade cautiously tomorrow ahead of US interest rate decision.
Commodities
Crude oil price fell to its lowest levels since early June as worries about China’s economy overshadow a new round of escalation in the Middle East. Brent prices fell by 1.65% to $78.46, while WTI prices decreased by 1.54% to $74.64. However, the price of gold gained 0.15% to $2,381.30 per ounce.
Outlook: We expect the volatility to persist.
