FIXED INCOME MARKETS
Money Market
Opening system liquidity decreased by c.21.37% compared to yesterday’s balance. However, the Open Repo Rate (OPR) declined by 5 bps to 25.35%, while the Overnight Rate (O/N) increased by 10bps to 25.90%.
Outlook: We expect interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market was calm today. Nevertheless, market closed bearish, as the average mid-rate across the benchmark NTB papers increased by 12bps to 23.29%.
Outlook: We market to be skewed towards the NTB auction tomorrow. The DMO would be offering N216.09 billion across the three tenors.
FGN Bonds
The local FGN bond market also settled bearish, with the average mid-yield increasing by 7bps to 19.71%.
Outlook: We expect market the bearish bias to persist, albeit, with less intensity.
Equities
The Nigerian stock market closed bearish, as the All-Share Index decreased by 0.67% to reach 96,928.52 points. The year-to-date return and market capitalization settled at 29.63% (from 30.50%) and ₦55.03 trillion, respectively. UBA recorded the highest trading volume with 62.83 billion units, as well as the highest value chart with ₦1.30 billion.
Outlook: We expect the bearish sentiment to persist.
Foreign Exchange
Naira appreciated against the USD by 0.38% to $/₦1,601.00.
Outlook: We expect volatility to persist.
Eurobonds
The Eurobonds market witnessed a rebound across the African papers, with support from the stronger-than-expected ISM Services PMI at 51.40 (Est. 51.1), from 48.8. Consequently, the average mid-yield for the Nigerian papers fell by 13bp to 10.68%.
Outlook: We expect volatility to subside tomorrow.
Commodities
Crude oil price appreciated today, amidst the risk of a major escalation in the Middle East. Brent prices increased by 1.00% to $77.06, while WTI prices gained 0.90% to $73.60. Gold prices eased declined by 0.77% to $2,425.20 per ounce.
Outlook: We expect the volatility to persist.
