FIXED INCOME MARKETS
Money Market
The financial system maintained its buoyant status today, as system liquidity opened at ₦480.69 billion from ₦459.34 billion yesterday. Thus, the Open Repo Rate (OPR) and the Overnight Rate (O/N) declined by 7bps and 9bps to 0.93% and 1.58%, respectively.
Outlook: We expect the interbank rates to remain at similar bands.
Treasury Bills
The treasury bills market started off with buying interests across the curve, although, market switched to bearish theme, as the market drew to a close. Nonetheless, the average mid-rate declined by 8bps to 5.83%.
Outlook: We expect activity to dwindle tomorrow.
FGN Bonds
The local bonds market was slightly active on selected papers. Average yield increased marginally by 1bp to settle at 14.39% due to the mild selling interests in 2026, 2028 and 2053 papers.
Outlook: We expect market to trade on a cautious note tomorrow.
Eurobonds
In the absence of any surprises from US CPI data, the Eurobonds market sustained its bullish theme, although, at less aggressive pace. For context, the US CPI for September printed at 3.70%, maintaining the same rate in August but marginally above 3.60% estimate. Towards closing hour, selling interests was notice on a few papers. Consequently, the average yield increased by 2bps to 11.80%.
Outlook: We expect market to remain relatively mixed.
Equities
The Nigerian’s equity market settled bullish today, as the ASI gained 0.05% to settle at 67,133.19 points, while year-to-date return settled at c.30.99%. The buying interests on UNILEVER (+6.04%) and UBA (+1.45%) impacted the bullish sentiment.
The NGX Banking, Industrial and Consumer Goods Indices appreciated by 0.94%, 0.01%, and 0.07%, respectively. The Oil & Gas Index closed flat. FIDELITYBK led the volume charts with 61.78 million units while ACCESSCORP led the value charts with ₦860.09 million.
Foreign Exchange
FMDQ’s Investors and Exporters (I&E) exchange rate appreciated to $/₦759.20, compared to $/₦776.80 recorded yesterday.
Outlook: We expect rates volatility to persist.
Commodities
Oil prices rose in today’s session, reversing earlier falls, on expectations that U.S. interest rates had peaked, but a lower demand growth forecast for next year from the International Energy Agency and higher U.S. inventories limited further gains. Brent crude oil prices appreciated by 0.90% to $86.59 per barrel, while West Texas Intermediate (WTI) appreciated by 0.69% to US$84.07 per barrel as of writing time. In contrast, Spot Gold depreciated 0.19% to US$1,883.80 per ounce at the time of this report.
Outlook: We expect oil prices to continue to swing sideways.
