FIXED INCOME MARKETS
Money Market
Opening system liquidity decreased by c.36.94% compared to yesterday’s balance. Thus, the Open Repo Rate (OPR) increased by 557 bps to 30.97%, while the Overnight Rate (O/N) increased by 587bps to 31.72%.
Outlook: We expect system liquidity to open lower tomorrow, while interbank rates remain elevated.
Treasury Bills
The treasury bills market observed some buying interests today. Overall, market closed the session bullish, as the average mid-rate across the benchmark NTB papers decreased by 40bps to 22.83%.
Outlook: We expect the bullish sentiment to linger tomorrow.
FGN Bonds
The local FGN bond market also had a bullish trend, with few demands recorded in May 2033 and 2034 maturities. Overall, the average mid-yield decreased by 7bp to 19.63%.
Outlook: We expect a similar trend tomorrow. The DMO rescheduled the FGN bond auction earlier scheduled for August 12 to August 19.
Equities
The Nigerian stock market closed bullish, as the All-Share Index increased by 1.05% to reach 98,116.27 points. The year-to-date return and market capitalization settled at 31.22% and ₦55.70 trillion, respectively. ACCESSCORP recorded the highest trading volume with 115.98 million units, while GTCO topped the highest value chart with ₦5.06 billion.
Outlook: We expect market to trade sideways tomorrow.
Foreign Exchange
Naira appreciated against the USD by 0.18% to $/₦1,593.62.
Outlook: We expect volatility to persist.
Eurobonds
The Eurobonds market posted mixed sentiments in today’s session. Also, the US Initial Jobless Claims printed lower at 233k (Est. 240k) from 250k. Overall, the average mid-yield for the Nigerian papers fell by 3bp to 10.43%.
Outlook: We expect the mixed sentiment to persist.
Commodities
Crude oil rose today, as positive Labor data eased recession fears and simmering Middle East tensions supported prices. Brent prices increased by 0.65% to $78.84, while WTI prices rose by 0.85% to $75.82. Gold prices increased by 1.05% to $2,458.00 per ounce.
Outlook: We expect the volatility to persist.
