FIXED INCOME MARKETS
Money Markets
Opening system liquidity decreased to ₦294.35billion long, compared with ₦355.75 billion recorded last week Friday. However, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 7bps and 37bps to 5.90% and 7.20%, respectively.
Outlook: We expect the interbank rates to remain at similar levels tomorrow.
Treasury Bills
The treasury bills market was quiet today, with minute activity on selected papers. Average yield lost 20bps to close at 6.99%, as players looked take positions ahead of treasury bills auction later into the week.
Outlook: We expect the same trend tomorrow
FGN Bonds
The local bonds market was also quiet, but with a bearish undertone. Average yield increased by 10bps to 13.88%.
Outlook: We expect the selling interest to continue tomorrow.
Eurobonds
Market was weak today, as sell offs spread across Nigeria and some SSA papers. Ghana’s papers witnessed a bullish bias due to jitters from the finance minister. Average yield fell significantly to 10.24% for Nigeria’s papers.
Outlook: We expect market to trend cautiously tomorrow, ahead of the next US inflation report.
Equities
The Nigerian’s bourse closed on a bullish note today, as the NGX ASI gained c.0.21%, to settle at 65,336.80 points, while year-to-date return settled at c.27.48%. Buying interests in ETERNA (0.55%) and ACCESSCORP (0.20%) drove the positive performance today. The NGX Banking and Oil & Gas Indices appreciated by 0.81% and 0.12%, respectively, while the NGX Industrial Goods and Consumer Goods Indices lost 0.01% and 0.05% respectively. STERLINGNG led the volume charts with 55.14 million units while MTNN led the value charts with ₦559.39 million.
Outlook: We expect the bullish sentiment to linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦774.78, compared with $/₦743.07 recorded last week Friday.
Outlook: We expect rates to remain volatile in the interim.
Commodities
Following an attack on a crucial Russian oil export facility and further production restrictions by OPEC’s two leading nations, Saudi Arabia and Russia, oil prices soared Monday to their highest level since mid-April. Brent oil prices depreciated by c.0.71% to $85.63pb, day-on-day, while WTI depreciated by c 0.78% day-on-day to settle at US$82.17pb. Spot Gold depreciated by c.0.29% day-on-day to close at US$1,970.30 per ounce as of report time.
Outlook: After Saudi Arabia and Russia cut production, we expect oil prices to rise.
