Money Market
System liquidity improved slightly as FAAC credits have begun to come in gradually. However, the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) increased by 1.28% and 1.30%, reaching 31.69% and 32.08%, respectively.
Outlook: : We expect system liquidity to remain in deficit by the end of the week.
Treasury Bills
The Treasury bills market settled on a bearish note, although significant interest was recorded during the day on the newly issued 1-year paper at around 20.30%—20.50%. Overall, the average mid-rate for the benchmark NTB rose by 11 bps, closing at 21.46%.
Outlook: We expect a mixed theme tomorrow.
FGN Bonds
The local FGN bonds market traded mixed to bullish, with sideways interest observed across select maturities, specifically on the Feb 2031, May 2033, and Feb 2034 papers. As a result, the average mid-yield decreased by 8bps to close at 19.20%.
Outlook: We expect the same sentiment to persist tomorrow.
Eurobonds
The Eurobond market closed positively, buoyed by favorable sentiment stemming from Angola’s recent discussions with the IMF regarding a new debt program. Additionally, Angola’s Finance Minister has indicated that there will be no Eurobond sales this year. Consequently, Angola’s Eurobonds led the gains across Sub-Saharan Africa, with these positive sentiments extending to Nigerian and Egyptian bonds. Overall, the average mid-yield for Nigerian bonds decreased by 9 bps, settling at 9.52%.
Outlook: We anticipate that the same sentiment will continue tomorrow.
Nigerian Equities
The bullish trend in the Nigerian stock market persisted today, with the NGX-ASI climbing 25 bps to close at 99,189.95 points and market capitalization hitting ₦60.10 trillion, up from ₦59.95 trillion. This upswing was driven by solid performances from ACCESSCORP, FBNH, UBA, ZENITHBANK, GTCO, and WAPCO, contributing to a 32.65% year-to-date growth. Most sectors gained, particularly Banking, while Consumer Goods declined slightly.
Outlook: We expect the same sentiment to persist.
Foreign Exchange
At the NAFEM window, the naira gained 3.20% in value against the USD, closing at $/₦1,601.20.
Outlook: We anticipate that the volatility will continue.
Commodities
Oil prices experienced a 1% decline marked by volatility, primarily due to fears that sluggish economic growth in Europe might dampen energy consumption. This uncertainty, compounded by ongoing tensions in the Middle East, has kept traders cautious as the U.S. presidential election approaches. Brent crude traded around $74.22, while WTI has decreased to $70.01. In contrast, gold prices have increased by approximately 1%, nearing their all-time highs, driven by safe-haven demand in light of ongoing geopolitical concerns. It traded around $2,747.80 per ounce.
Outlook: We expect the sentiment to persist.
