FIXED INCOME MARKETS
Money Market
Opening system liquidity declined by 4.28% to ₦510.09 billion from ₦532.89 billion last Friday. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) remained unchanged at 1.00% and 1.70%, respectively.
Outlook: We expect the interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market was bullish today, as buyside interests scouted for the March, July & September 2024 papers. The one-year paper declined from 10% to 9% levels, as investors take position ahead of this week’s NTB auction. Consequently, the average mid-rate fell by 20bps to 6.10%.
Outlook: We expect the bullish bias to persist.
FGN Bonds
Activity in the FGN bonds market was mixed across several papers like the 2026, 2028 and 2053 papers amongst others. Overall, the average mid-yield increased marginally by 1bp to 14.36%.
Outlook: We expect a similar performance tomorrow.
Eurobonds
The Eurobonds market was bearish across board including the SSA and MENA region, triggered by the geopolitical tensions between Isreal and Hamas and affiliated countries. However, Angola posted a relatively bullish performance amid rising oil prices. As a result, the average yield increased by c.13bps to 12.48%.
Outlook: We expect the bearish bias to spill into tomorrow’s session.
Equities
The Nigerian’s equity market settled on a bullish note today, as the ASI gained by 0.97% to settle at 67,099.18 points, while year-to-date return settled at c.30.92. The buying interests seen on NB (+9.09%) and OANDO (+2.22%) impacted the bullish bias today. The NGX Industrial, Consumer Goods and Oil & Gas Indices appreciated by 4.02%, 0.78% and 0.36%, respectively, while the Banking Index declined by 0.44%. ABCTRANS led the volume charts with 29.27 million units while ACCESSCORP led the value charts with ₦465.97 billion, respectively.
Outlook: We expect a mixed bias in the interim.
Foreign Exchange
FMDQ’s Investors and Exporters (I&E) exchange rate appreciated to $/₦773.54, compared to $/₦775.20 recorded last Friday.
Outlook: We expect rates volatility to persist.
Commodities
Oil prices jumped about 4% today, as the Israel-Hamas conflict extended into its third day following a surprise attack on Israel by Palestinian militants Hamas. Brent crude oil prices appreciated by 4.02% to $87.98 per barrel, while West Texas Intermediate (WTI) declined by 4.18% to US$86.25 per barrel as of writing time. In contrast, Spot Gold appreciated 1.15% to US$1,866.40 per ounce at the time of this report.
Outlook: We expect oil prices to stay elevated.
