FIXED INCOME MARKETS
Money Market
System liquidity opened at ₦496.63 billion from ₦510.09 billion yesterday. Nonetheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) declined by 7bps and 12bps to 0.93% and 1.58%, respectively.
Outlook: We expect the interbank rates to close at similar levels tomorrow.
Treasury Bills
The treasury bills market extended its bullish bias in today’s session, with buyside interests seen on March and September papers, suggesting expectation for a decline in stop rates at tomorrow’s auction. Consequently, the average mid-rate declined by 14bps to 5.92%.
Outlook: We expect focus to be cantered on the NTB auction tomorrow.
FGN Bonds
Generally, activity was less active in the local bonds market. However, there were sideways interests across the 2026s, 2027s, 2028s, 2029s and 2053 papers. Overall, the average mid-yield declined by c.2bps to 14.34%.
Outlook: We expect a mixed bias in the interim.
Eurobonds
After the recent selloffs, the Eurobonds market dialled back its bullish bias with bargain hunting across the curve in both regions, given attractive yield levels. As a result, the average yield shed 50bps to settle at 11.97%.
Outlook: Expectations around the next CPI data should impact market direction in the interim. Although, the minutes of the last US FOMC meeting would be unveiled tomorrow.
Equities
The Nigerian’s equity market closed bearish today, as the ASI slipped by 0.17% to settle at 67,101.33 points, while year-to-date return settled at c.30.93. The buying interests on OANDO (+7.61%) was the leading bullish driver, while PRESCO (-9.54%), UNILEVER (-4.33%) and ACCESSCORP (-1.25%) influenced the pull back today.
The NGX Banking and Consumer Goods Indices declined by 1.11% and 0.11%, respectively. The Oil & Gas Index gained 0.36%, while the Industrial Goods Index closed flat. FIDELITYBK led the volume charts with 53.40 million units while SEPLAT led the value charts with ₦3.85 billion.
Foreign Exchange
FMDQ’s Investors and Exporters (I&E) exchange rate appreciated to $/₦765.83, compared to $/₦773.54 recorded yesterday.
Outlook: We expect rates volatility to persist.
Commodities
Oil prices oil declined today, continuing a slide that began earlier in the day with traders focused on demand levels but still cautious as they watched for potential supply disruptions amid clashes between Israel and Hamas. Brent crude oil prices lost 1.01% to $87.26 per barrel, while West Texas Intermediate (WTI) declined by 1.08% to US$85.45 per barrel as of writing time. In contrast, Spot Gold appreciated 0.41% to US$1,871.90 per ounce at the time of this report.
