FIXED INCOME MARKETS
Money Market
Opening system liquidity settled at ₦165.09 billion, compared with ₦282.20 billion, recorded yesterday. As a result, the Open Repo Rate (OPR) increased by 93bps to 4.00%, while the Overnight Rate (O/N) expanded by 113bps to 4.80%.
Outlook: We expect interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market was stirred towards a positive note today, as buyside interests came in for long-dated bills, albeit, on a less aggressive note. Overall, the average mid-rate fell by 6bps to 7.59%, day-on-day.
Outlook: We expect activities to ease tomorrow.
FGN Bonds
Activity on the local bonds market was slightly bullish, with buying interests on a few selected papers, especially 2053 maturity. As a result, average yield settled at c. 14.18%, due to the immaterial average decline.
Outlook: We expect similar activities to resurface tomorrow.
Eurobonds
Ahead of today’s US jobless claims data, the SSA Eurobond market started the session with bearish sentiment across board. The US unemployment claims fell to 216k (lowest since February), from the revised 229k. Nevertheless, market recovered some of its losses, as players shrugged off the likelihood of a rate hike, with some buying interests seen across the region. Thus, average yield declined by 12bps to 11.12%.
Outlook: We expect the bullish sentiment to ease tomorrow.
Equities
The Nigerian’s bourse closed on a bearish note, as the NGX ASI lost c.0.30%, to settle at 68,082.11 points, while year-to-date return settled at c.32.84%. Selling interests in DANGSUGAR (-3.98%) and NESTLE (-1.39%) drove the negative performance today.
The NGX Banking Index appreciated by 0.10%. On the flip side, the Industrial Goods, Consumer Goods, and Oil & Gas Indices depreciated by 0.71%, 0.65%, and 0.12%, respectively. OANDO led the volume with 91.64 million units, while NESTLE led the value charts with ₦1.93 billion
Outlook: We expect the bearish sentiment to ease tomorrow.
Foreign Exchange
FMDQ’s I & E rate appreciated to $/₦736.62, compared with $/₦771.59 recorded yesterday.
Outlook: We expect rates to decline in the short-term.
Commodities
Oil prices eased today as an uncertain economic outlook for China outweighed expectations of tighter supplies from extended supply cuts in Saudi Arabia and Russia. Brent oil prices declined by c.0.35% to $90.28pb, day-on-day, while WTI depreciated by c. 0.22% day-on-day to settle at US$87.35pb. Spot Gold depreciated by c.0.12% day-on-day to close at US$1,941.90 per ounce as of report time.
Outlook: We expect oil prices to remain steady in the interim.
