FIXED INCOME MARKETS
Money Markets
Opening System liquidity remained negative at c. ₦67.21billion short, compared with the opening balance of ₦201.37 billion short, recorded yesterday. Consequently, the Open Repo Rate (OPR) and Overnight Rate (O/N) declined by 38bps and 12bps to 17.50% and 18.13% respectively.
Outlook: We expect the interbank rates to remain at its elevated levels tomorrow
Treasury Bills
The treasury bills market extended its bearish performance today, with sell interests across the mid-to-long end of the curve, notably October papers, with scarce buyers in the market. Thus, average yield soared by 36bps to 6.93%.
Outlook: The bearish posture is expected to re-emerge tomorrow.
FGN Bonds
The local bonds market traded sideways today, with bids and offers seen across the 2028, 2037, 2042 and 2050 papers. Overall, activity was less active, as average yield remained at 14.13%.
Outlook: We expect tomorrow’s session to trade on a calm note, in the absence of any jitters.
Eurobonds
Finally, the long-discussed $3bn Extended Credit Facility (ECF) to Ghana was approved by the IMF today. Following the breakthrough, the positive sentiment spilled over SSA peers in addition to the progressive US debt ceiling discussions, with relieving bullish ride across board. Consequently, average yield repriced lower by 15bps to 12.38%
.Outlook: We expect the bullish bias to sustain tomorrow.
Equities
The Nigerian equity market closed on a bearish note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost c.0.90% to close at 52,109.43 points, while year-to-date return settled at c 1.67%. Observably, selling interest in AIRTELAFRI (6.00%), TRANSCORP (3.45%), and UBA (1.74%) drove the downward trend recorded today. The NGX Banking, Consumer Goods and Oil & Gas Indices depreciated in value today by 0.44%, 0.02% and 0.48%, respectively. Similarly, the NGX Industrial Goods Index depreciated in value by 0.01%. ACCESSCORP led the volume charts with c. 64.69 million units while GTCO led the value charts with c. ₦ 1.34 billion.
Outlook: We expect tomorrow’s session to trend bearish.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate appreciated to ₦463.00/US$1.00 from ₦465.13/US$1.00 recorded yesterday.
Outlook: We expect the NAFEX rate to hover at similar levels tomorrow.
Commodities
Oil prices fell today, over pessimism on U.S debt ceiling. As of report time, Brent oil prices depreciated by c. 0.68% to $76.40 per barrel in intraday trade, while WTI depreciated by c 0.51% day-on-day to settle at US$72.52pb. Similarly, Spot Gold depreciated by c. 1.25% day-on-day to close at US$1,960.10 per ounce as of report time.
Outlook: We expect the trend in Oil prices to be attuned to updates from the U.S Congress on the debt ceiling.
