Money Market
System liquidity deteriorated today as more DMBs increased exposure to the SLF window. As a result, the Open Repo Rate (OPR) increased by 17 bps to 31.45%, and the Overnight Rate (O/N) rose by 27 bps to 31.83%.
Outlook: We expect the interbank rates to remain at a similar level.
Treasury Bills
The treasury bills market had a mixed session, with sideways movement across select papers. The average mid-rate across the benchmark NTB papers decreased by 3 bps to 19.43%.
Outlook: We expect the mixed sentiment to persist tomorrow.
FGN Bonds
The local FGN bond market experienced a mixed session with early buying interest in the May 2033 bond decreasing by midday. Subsequently, sellers began improving their offers, leading to a slight increase in the average mid-yield, settling at 18.29%.
Outlook: We expect a similar play in the interim.
Eurobonds
The African Eurobonds had a positive session after yesterday’s rate cut. There was strong demand for Nigeria, Angola, and Egypt papers. However, by the close of the market, the buying slowed down. On average, the mid-yield across the Nigerian curve decreased by 15 bps to 9.51%.
Outlook: We anticipate a similar play at tomorrow’s session.
Nigerian Equities
The local stock market closed negatively today, as the NGX-ASI dropped by 0.23% to 98,003.75 points. This decline was attributed to decreased share prices of FBNH, OANDO, WAPCO, DANGSUGAR, and GTCO. Despite this, trading activity improved, with 473.09 million shares valued at ₦11.36 billion traded. All major sectors experienced losses, with the Banking sector recording the steepest decline at 0.62%.
Outlook: We expect the same sentiment to persist tomorrow.
Foreign Exchange
The Naira depreciated against the USD at the NAFEM window today, losing 0.28% to close at $/₦1544.02.
Outlook: We expect volatility to persist.
Commodities
Oil prices increased today following a larger-than-expected interest rate cut by the Federal Reserve. Thus, as of the latest report, the Brent price is up by 1.72% to $74.92, and the WTI price increased by 1.16% to $72.09. Additionally, Gold prices surged over 1%, as the U.S. Federal Reserve initiated its rate easing cycle. Currently, the price of gold is approximately $2,608.90 per ounce.
Outlook: We expect the positive sentiment to persist.
