FIXED INCOME MARKETS
Money Markets
Estimated opening system liquidity figure printed at ₦156.39 billion long. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) both remained unchanged at 11.60% and 12.10% respectively.
Outlook: We expect the interbank rates to decline next week, as fears of CRR debits dwindle.
Treasury Bills
The treasury bills market traded on a mixed-to-bullish note today, with buying interests around the belly and long end of the curve. Nevertheless, average yield declined by 19bps to 6.92%.
Outlook: We expect market activities to maintain a mixed trend next week.
FGN Bonds
The local bonds market endured a fairly quiet theme, albeit with a bullish undertone. Activities were seen across the 2037, 2042 and 2050 papers. Nonetheless, average yield stayed at 13.72%.
Outlook: We expect the outcome of the bond auction to determine the direction of market next week.
Eurobonds
The Eurobonds market sustained its bullish rally today, with buying interests seen across board. Although, average yield stayed at 10.38%.
Outlook: We expect the bullish bias to persist next week, while investors maintain a close-watch on economic data and country-specific dynamics
Equities
The Nigerian equity market closed on a bearish note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) depreciated by c.0.33% to close at 59,000.96 points, while year-to-date return settled at c 15.12%. Selling interests in ZENITHBANK (-1.05%) and GTCO (-1.25%) pulled the Index to close bearish. The NGX Banking, Industrial, Consumer Goods and Oil &Gas Indices all depreciated in value by 14.63%, 1.48%,2.78% and 14.12%, respectively. LIVINGTRUST led the volume charts with c.103.43 million units while ZENITHBANK led the value with c. ₦ 1.21billion.
Outlook: We expect the bearish sentiment to persist next week.
Foreign Exchange
FMDQ’s I & E rate appreciated to ₦663.04 today, from ₦702.19/US$1.00 recorded yesterday, as the market continue to adjust towards equilibrium.
Outlook: We expect the I&E rate to remain volatile.
Commodities
Despite trading moderately lower early Friday, oil prices were set to reverse a two-week losing skid, owing to optimism about increased energy demand from major crude importer China and a weaker currency.
Outlook: We expect Oil prices to increase ending a two-week losing trend due to increased demand from China.
