FIXED INCOME MARKETS
Money Markets
System liquidity remained in its negative territory today, with an opening balance of c.-₦81.08billion, compared to yesterday’s opening positive balance of c. -₦61.08 billion. Thus, the Overnight Policy Rate (OPR) remained unaltered at 18.63%, while the Overnight Rate (O/N) increased by 25bps to 19.00%.
Outlook: We expect the interbank rates to remain at its elevated levels tomorrow.
Treasury Bills
The treasury bills market traded mildly bearish today, as offers improved on the long-dated papers, while demand remained unstirred. Consequently, the average yield propped up by 27bps to 7.41%.
Outlook: We expect a similar theme tomorrow, pending any major catalyst.
FGN Bonds
Activity in the local bonds market was generally relaxed with mixed sentiments. Most of the Interest was skewed to specific maturities, especially 2028, 2037 and 2049 papers. Overall, the average mid-yield lost 2bps to close at 13.94%.
Outlook: We expect the market to remain choppy in tomorrow’s session.
Eurobonds
The Eurobonds market expressed a bearish sentiment today, following the sharp decline in the U.S job Openings data. Overall, offers were stationed across several region of the curve, thereby, pushed up average yields by c. 33bps to 12.13%.
Outlook: We expect the direction of market to be at the mercy of other key indicators tomorrow.
Equities
The Nigerian equity market closed on a bearish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) declined in value by c.-1.98% day-on-day, to close at 53,018.97, while year-to-date return closed at c 3.45%. Selling interest in AIRTELAFRI (-10.00%) significantly triggered the pull back in today’s negative performance. The NGX Consumer Goods Index depreciated in value by c. -0.26%, while the NGX Banking, Industrial and Oil &Gas Indices appreciated in value by c. 0.49%, 0.04%, and c. 0.12% respectively. UBA led the volume charts with c.64.20 million units while AIRTELAFRI led value charts with c. ₦ 536.79 million.
Outlook: We expect the bearish bias to linger tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦463.75/US$1.00 from ₦463.30/US$1.00 recorded yesterday.
Outlook: We expect the Naira to remain steady at $/₦463 levels at the NAFEX window.
Commodities
Oil prices were somewhat stable today, as the market digested the gloomy economic prospects versus OPEC’s cut in production output. Brent oil prices declined by c. -0.36% to $84.63 per barrel in intraday trade, while WTI shed c -0.56% day-on-day to settle at US$80.26pb as at print time. Similarly, Spot Gold depreciated in value by c. -0.10% day-on-day to close at US$2,036.20 per ounce as of report time.
Outlook: We expect oil price to lurch at closed-range bands in the interim.
