FIXED INCOME MARKETS
Money Markets
Opening system liquidity increased to ₦788.93 billion long, compared with ₦686.56 billion recorded last week Friday. Thus, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 2bps respectively to 0.92% and 1.42%.
Outlook: We expect the interbank rates to hover at similar levels tomorrow
Treasury Bills
The treasury bills market was mostly quiet in today’s session, with minimal interests on selected papers. Average yield remained flat at 7.01%.
Outlook: We expect to see some buyside interests tomorrow, given the improved system liquidity.
FGN Bonds
Activity in the bonds market also posted a quiet posture, but with a bearish undertone, as average yield increased by 7bps to settle at 13.45%.
Outlook: We expect market to stay quiet tomorrow, in the absence of any significant driver.
Eurobonds
The Eurobonds market witnessed ample buyside activity across the oilers (Nigeria and Angola) and Ghana papers, mostly in response to China’s announcement to boost consumption. Average yield fell by 24bps to 9.89%.
Outlook: The US Job opening data and Manufacturing PMI data could dictate the direction of market activity tomorrow
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI lost c.1.10%, to settle at 64,337.52 points, while year-to-date return settled at c.25.53%. Selling interests in ACCESSCORP (-0.50%) and DANGSUGAR (-3.00%) drove the negative performance today. The NGX Banking, Industrial and Consumer Goods Indices depreciated by 2.55%, 0.03% and 1.42%, respectively, while the NGX Oil & Gas Index appreciated by o.40%. ABBEYBDS led the volume charts with 112.26 million units while MTNN led the value charts with ₦1.01 billion.
Outlook: We expect the bearish sentiment to ease tomorrow
Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦756.94, compared with $/₦ 768.60 recorded last week Friday.
Outlook: We expect rates to remain volatile in the interim.
Commodities
On Monday, oil prices were hovering at three-month highs, poised to notch their biggest monthly gains in almost a year on expectations that Saudi Arabia would prolong voluntary output cuts into September, tightening global supply. Brent oil prices appreciated by c.0.13% to $85.10pb, day-on-day, while WTI appreciated by c 0.42% day-on-day to settle at US$80.92pb. Spot Gold depreciated by c.0.28% day-on-day to close at US$1,994.30 per ounce as of report time.
Outlook: We expect oil prices to be on track to post its largest monthly rise in over a year.
