FIXED INCOME MARKETS
Money Market

Opening system liquidity increased today, causing the Open Repo Rate (OPR) to decrease by 764 bps to 26.05%, while the Overnight Rate (O/N) decreased by 776 bps to 26.60%.

Outlook: We expect interbank rates to stay at similar levels tomorrow.

Treasury Bills

The treasury bills market ended on a bullish note today, as there is anticipation for a decrease in stop rates at the primary market auction. As a result, the average mid-rate across the benchmark NTB papers declined by 5 bps to 20.58%.

Outlook: We expect the auction results to impact the direction of tomorrow’s trading session.

FGN Bonds

Today, the local FGN bonds market witnessed less volatility. Overall, market closed flat, and the average mid-yield remained relatively unchanged at 19.34%.

Outlook: We expect market to trade sideways tomorrow.

Equities

The Nigerian stock market closed bearish today, with the All-Share Index falling by 0.07% to reach 95,831.51 points. The year-to-date return and market capitalization settled at 28.16% and ₦55.05 trillion, respectively. OANDO led both the highest volume and values charts with 66.23 million units and ₦2.69 billion.

Outlook: We expect the current sentiment to resurface tomorrow.

Foreign Exchange

Naira appreciated against the USD by 3.03% to $/₦1,543.84.

Outlook: We expect volatility to persist.

Eurobonds

Today, the Eurobond market settled slightly bullish as participants anticipated the minutes from the last FOMC meeting. Overall, the average mid-yield for Nigerian papers decreased by 6 bps to 9.92%.

Outlook: We expect that any major surprises in the minutes will impact tomorrow’s trading session. Also, the market will shift its attention to the US PMI and Initial Jobless Claims data.

Commodities

Oil prices remained relatively stable today, with Brent prices rising by 0.19% to $77.35 and WTI prices increasing by 0.03% to $73.18. On the other hand, gold prices decreased, as investors awaited the minutes from the U.S. Federal Reserve’s latest policy meeting for insights on potential interest rate cuts. As a result, the price of gold dropped by 0.14% to $2,547.10 per ounce.

 OutlookWe expect the volatility to persist.

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