FIXED INCOME MARKETS
Money Markets
Opening System liquidity decreased to c. ₦489.03 billion long, compared with the opening balance of ₦531.32 billion long, recorded yesterday. Consequently, the Open Repo Rate (OPR) increased to 11.25%, while the Overnight Rate (O/N) held steady at 11.50%.
Outlook: We expect the interbank rates to inch upwards tomorrow.
Treasury Bills
The treasury bills market started off with bargain hunting for long end papers, especially 23 May 2024. Going into the session, market turned quietly mixed to bearish, with interests centered around the mid-to-long dated papers.
Outlook: We expect tomorrow’s session to trade on a calm note, as market anticipates CRR debit across banks.
FGN Bonds
The local bonds market extended its mixed performance today, with interests across several papers including the 2026, 2027, 2037 and 2050 maturities. Nonetheless, average yield remained at 13.85%.
Outlook: We expect similar trend in tomorrow’s session.
Eurobonds
As talks for more aggressive rate hikes by Fed wanes, the Eurobonds market sustained a bullish momentum in today’s session. Buying interests spilled across board, leading to 26bps decline in average yield to settle at 11.63%.
Outlook: We expect tomorrow’s session to be swayed by economic indicators.
Equities
The Nigerian equity market closed on a bearish note, as the Nigerian Stock Exchange All Share Index (NGX ASI) declined by c.0.20% to close at 52,821.60 points, while year-to-date return settled at c 3.06%. Observably, selling interest in GEREGU (-15%), and GTCO (-0.40%) drove the negative trend today. The NGX Banking, Industrial Goods and Consumer Goods Indices all depreciated in value by 0.11%, 0.07%.and 0.14% respectively. However, the NGX Oil & Gas Index appreciated in value today by 0.23%. UBA led the volume charts today with c. 86.17 million units, while GEREGU led the value charts today with c. ₦ 3.92 billion.
Outlook: We expect the bearish posture to linger tomorrow.
Foreign Exchange
FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) rate depreciated to ₦463.67/US$1.00 from ₦463.33/US$1.00 recorded yesterday.
Outlook: We expect the NAFEX rate to hover at similar levels tomorrow.
Commodities
Oil prices dipped in early Asian trading on Thursday as concerns about the United States avoiding a financial default outweighed the promise of additional OPEC+ supply cutbacks. As of report time, Brent oil prices depreciated by c. 0.23% to $78.18pb, day-on-day, while WTI depreciated by c 0.38% day-on-day to settle at US$74.06pb. Spot Gold depreciated by c. 0.29% day-on-day to close at US$1,959.00per ounce as of report time.
Outlook: We expect Oil Prices to fall as US debt concerns persist.
