FIXED INCOME MARKETS
Money Markets
Opening system liquidity settled at ₦574.64 billion long, compared with last Friday’s opening balance of ₦668.52 billion. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) declined by 90ps and 60bps to 2.00% and 2.80% respectively.
Outlook: We expect the interbank rates to trend at lower levels in the interim.
Treasury Bills
The Treasury bills market was bullish today with buyside interest across board, due to a robust system liquidity. Thus, the average mid-rate fell by 90bps to 4.72%.
Outlook: We expect market players to trade cautiously tomorrow, in anticipation of this week’s treasury bills primary market auction.
FGN Bonds
Activity in the FGN bonds market was bullish, with significant buyside interest recorded across the yield curve. Specific maturities, 2026s, 2037s, 2038s, 2042s, 2050s and 2053s, declined materially amid intense demand. Also, the DMO released the bond auction calendar for Q3’2023, which entails a repeat of the on-the-run maturities. At the closing bell, the average mid-yield fell by 26bps to settle at 13.05%.
Outlook: We expect to the bullish bias to persist tomorrow.
Eurobonds
The Eurobonds market was swayed by mixed sentiments across the curve, as participants looked to take position with uneven expectations on the unfolding economic happenings. Average yield increased by 5bps to 10.62%.
Outlook: We expect the mixed trend to linger tomorrow.
Equities
The Nigerian equity market closed on a bullish note today, as the Nigerian Stock Exchange All Share Index (NGX ASI) appreciated by c.0.22% to close at 59,338.76 points, while year-to-date return settled at c 15.78%. Buying interests in GTCO (+3.97%) and ACCESSCORP (+2.01%) pushed the Index to close bullish. All Indices closed in the green. The NGX Consumer Goods and Oil & Gas Indices appreciated in value by 0.14%, and 0.52% respectively. While the NGX Banking and Industrial Goods Index appreciated by 2.40% and 1.00%. ACCESSCORP led the volume charts with c.74.60 million units while BUACEMENT led the value with c. ₦ 3.86 billion.
Outlook: We expect the bullish bargain to remain dominant.
Foreign Exchange
FMDQ’s I & E rate depreciated to ₦768.17 today, from ₦765.13/US$1.00 recorded last week Friday.
Outlook: We expect the volatility to persist tomorrow.
Commodities
Oil prices erased gains made in the previous session, tracking a broader calm in financial markets as investors watched warily to see if there will be further fallout from an attempted insurrection in Russia that could disrupt energy supplies from one of the world’s largest oil producer nations. Brent oil prices depreciated by c. 0.84% to $74.47pb, day-on-day, while WTI decreased by c 0.78% day-on-day to settle at US$69.70pb. Spot Gold depreciated by c. 0.26% day-on-day to close at US$1,934.60per ounce as of report time.
Outlook: We expect Oil prices to range in the interim, pending any significant driver.
