FIXED INCOME MARKETS
Money Market

Opening system liquidity improved to ₦640.08 billion, compared with ₦339.72 billion, recorded yesterday. As a result, the Open Repo Rate (OPR) increased by 8bps to 2.58%, while the Overnight Rate (O/N) declined by 10bps to 3.00%.

Outlook: We expect interbank rates to hover at similar levels tomorrow.

Treasury Bills

The treasury bills market closed on a bearish note today, as yield improved on several papers, given the less aggressive demand and possibility of an OMO auction later this week. As a result, the average mid-yield nudged up by 28bps to 8.06%.

Outlook: We expect a similar trend tomorrow.

FGN Bonds

The bonds market witnessed increased buying interests in today’s session, with most buyers scouting for selected short and long dated papers. Consequently, average yield fell by 5bps to 14.09%

Outlook: We expect the current market trajectory to persist tomorrow.

Eurobonds

The Eurobonds market closed on a bearish note across the African curves, amid fresh reports of a military coup in Gabon and weakened US economic data. For context, the US GDP grew at 2.1% in Q2’2023 below 2.4% estimate, while ADP employment data showed that 177k jobs were added in August, lower than market forecast of 195k jobs. Thus, the average yield surged by 12bps to 10.92%.

Outlook: The PCE Price Index, amongst other economic data on our watch, should drive activity tomorrow. 

Equities

The Nigerian’s bourse closed on a bearish note, as the NGX ASI decreased by c.0.08%, to settle at 66,439.53 points, while year-to-date return settled at c.29.64%. Selling interests in TRANSCORP (-0.70%), and ACCESSCORP (-0.05) drove the negative performance today.

The NGX Banking and Oil& Gas Indices depreciated by 0.64% and 0.02% respectively. While the Consumer Goods and Industrial Goods Indices appreciated by 0.32% and 0.11% respectively. TRANSCORP led both the volume charts and the value charts with 292.41 million units and ₦2.15 billion, respectively.

Outlook: We expect the bearish sentiment to linger tomorrow.

Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦738.18, compared with $/₦775.34 recorded yesterday.

Outlook: We expect rates to remain volatile in the interim.

Commodities

Oil prices rose further on Wednesday after data showed a significant draw in oil stocks in the United States, the world’s largest fuel user, and as a hurricane in the Gulf of Mexico put investors on edge. Brent oil prices appreciated by c.0.61% to $86.01pb, day-on-day, while WTI appreciated by c. 0.74% day-on-day to settle at US$81.76pb. Spot Gold appreciated by c.0.03% day-on-day to close at US$1,965.60 per ounce as of report time.

Outlook: We expect oil prices to climb as the United States stockpiles deplete.