FIXED INCOME MARKETS
Money Market
Opening system liquidity settled at ₦125.04 billion short, compared with ₦73.44 billion short, recorded last Friday. As a result, the Open Repo Rate (OPR) increased by 228bps to 20.11%, while the Overnight Rate (O/N) expanded by 208bps to 20.83%.
Outlook: We expect interbank rates remain elevated in the interim.
Treasury Bills
The treasury bills market was calm today, although, with a bearish backdrop, as the frail system liquidity and bond auction kept market on a cautious note. At the end of today’s session, average mid-rate soared by 31bps to 7.96%, day-on-day.
Outlook: Activity should stay quiet tomorrow.
FGN Bonds
Activity on the local bonds market was also quiet, with a bearish undertone, due to the hefty attention at the primary market today. As a result, average yield settled increased by 3bps to 14.23%, day-on-day.
Outlook: We expect the bearish bias to linger tomorrow, given the upward shift in today’s auctioned rates, coupled with poor liquidity.
Eurobonds
The Eurobonds market was mixed today across major papers, although, with few late sellers across the Nigerian curve. Moreso, volatility was little, due to the absence of significant market jitters. Overall, average yield increased by 15bps to 11.14%.
Outlook: We expect activity to stir at similar levels tomorrow.
Equities
The Nigerian’s bourse closed on a bearish note, as the NGX ASI lost c.1.24%, to settle at 67,296.18 points, while year-to-date return settled at c.31.31%. Selling interests in UBA (-9.18%) and ACCESSCORP (-8.57%) drove the negative performance today.
All Indices closed in the red. The NGX Banking Index depreciated by 6.11%. Similarly, the Industrial Goods, Consumer Goods, and Oil & Gas Indices depreciated by 0.28%, 1.45%, and 0.10%, respectively. UBA led the volume with 73.93 million units, while ZENITHBANK led the value charts with ₦1.53 billion.
Outlook: We expect the bearish sentiment linger tomorrow.
Foreign Exchange
FMDQ’s I & E rate depreciated to $/₦773.50, compared with $/₦722.39 recorded last Friday.
Outlook: We expect rates to decline in the short-term.
Commodities
Oil prices were little-changed in today’s session after fresh Saudi and Russian crude output cuts had driven prices to 10-month highs last week. Brent oil prices appreciated by c.0.30% to $90.92pb, day-on-day, while WTI depreciated by c. 0.10% day-on-day to settle at US$87.42pb. Spot Gold appreciated by c.0.18% day-on-day to close at US$1,946.10 per ounce as of report time.
Outlook: We expect oil prices to remain steady in the interim.
