FIXED INCOME MARKETS
Money Market
Opening system liquidity decreased by c.0.40% compared to yesterday’s balance. However, the Open Repo Rate (OPR) declined by 15 bps to 25.28%, while the Overnight Rate (O/N) decreased by 13bps to 25.72%.
Outlook: We expect slight changes in interbank rates tomorrow.
Treasury Bills
The treasury bills market closed bearish today. Noticeably, activity was saturated across the April, May and July papers. Overall, the average mid-rate across the benchmark NTB papers increased by 27bps to 23.40%.
Outlook: We expect a similar occurrence tomorrow
FGN Bonds
The local FGN bond market was less active today. Only a few interests were seen on the 2033 and 2050 papers. At the end of trading, market closed flat as the average mid-yield remained unchanged at 19.63%.
Outlook: We expect market to trend sideways tomorrow.
Equities
The Nigerian stock market closed bearish, as the All-Share Index decreased by 0.42% to reach 97,359.76 points. The year-to-date return and market capitalization settled at 30.21% and ₦55.28 trillion, respectively. FIDELITYBK recorded the highest trading volume with 372.91 billion units, as well as the highest value chart with ₦3.94 billion.
Outlook: We expect the bearish theme to linger.
Foreign Exchange
Naira appreciated against the USD by 2.41% to $/₦1,570.00.
Outlook: We expect volatility to persist.
Eurobonds
The Eurobonds market recovered some of its losses, after the Federal Reserve maintained a hold stance with a rate cut in view as soon as September’s meeting. Consequently, the average mid-yield for the Nigerian papers increased by 1 bp to 10.07%.
Outlook: We expect sentiment to be impacted by the US Job report tomorrow.
Commodities
Crude oil price decreased today amidst tensions between Iran and Israel. Brent prices decreased by 0.75% to $80.23, while WTI prices fell by 1.05% to $77.09. Similarly, the price of gold increased by 0.67% to $2,489.50 per ounce.
Outlook: We expect the volatility to persist.
