FIXED INCOME MARKETS
Money Markets
Opening system liquidity improved to ₦177.47 billion long, compared to ₦33.55 billion recorded yesterday. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 236bps and 176bps to 21.42% and 21.40%, respectively.
Outlook: We expect the interbank rates to remain at its double-digit levels tomorrow.
Treasury Bills
The treasury bills market was bearish earlier today, as offers scouted for bids, especially on the medium to long end of the curve (February and August 2023). By close of market however, few bids resurfaced to match the available offers. Overall, the average mid-rate closed at c.6.99%
Outlook: We expect the mixed theme to persist tomorrow
FGN Bonds
The local bonds market retreated slightly to a bullish theme, as participants considered maturities with attractive yield levels. Thus, the average mid-yield declined by 2bps to 13.99%.
Outlook: We expect some cherry-picking activities tomorrow
Eurobonds
The Nigeria’s Eurobonds market continued to enjoy positive sentiment from the $3 billion loan secured between NNPCL and Afrexim bank. While Angola posted a positive theme, Ghana’s curve suffered some selloffs. Overall, the average yield shed 48bps to 10.93%.
Outlook: We expect the bullish bias to resurface tomorrow.
Equities
The Nigerian’s bourse closed on a bearish note today, as the NGX ASI declined by c.0.27%, to settle at 64,448.96 points, while year-to-date return settled at c.25.75%. Selling interests in FBNH (+3.61%), and FIDELITYBK (+2.74) drove the positive performance today. The NGX Banking and Industrial Goods Index declined by 0.44%, and 0.03% respectively. While the NGX Consumer Goods and Oil & Gas Index appreciated by 0.34% and 0.06%, respectively. FIDELITYBK led both the volume charts and value charts with 80.05 million units and ₦595.54 million.
Outlook: We expect the bearish sentiment to linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦740.67, compared with $/₦759.86 recorded yesterday.
Outlook: We expect rates to remain volatile in the interim
Commodities
Oil prices advanced in today’ session after China’s central bank sought to stem the rising tide of pessimism over the country’s property market and wider economy.. Brent oil prices appreciated by c.1.43% to $84.64pb, day-on-day, while WTI depreciated by c 1.74% day-on-day to settle at US$80.76pb. Spot Gold depreciated by c.-0.06% day-on-day to close at US$1,927.20 per ounce as of report time.
Outlook:We expect oil prices to remain elevated in the interim.
