FIXED INCOME MARKETS
Money Market
Opening System liquidity increased by 20.65% to c.₦544.82 billion from ₦451.59 billion recorded yesterday. Nevertheless, the Open Repo Rate (OPR) and the Overnight Rate (O/N) expanded by 15bps and 60bps to 16.32% and 17.29%, respectively.
Outlook: We expect the interbank rates to close at similar levels tomorrow.
Treasury Bills
Activity in the treasury bills market was mixed in today’s session, though, offers drove the market to close slightly bearish. As a result, the average mid-rate increased by 2bps to 11.89%.
Outlook: We expect the market to trade cautiously tomorrow, as the DMO would be offering ₦310.12 billion worth of treasury bills.
FGN Bonds
The local FGN bonds market endured a mixed to bearish theme, as selling interest dominated across most papers, particularly 2029, 2038 and 2053. However, few buyside activity was observed across some short-dated papers. Overall, the average mid-yield increased by c.3bps to settle at 16.04%.
Outlook: We expect a somber theme tomorrow, as investors will keep on eye on NTB auction for guidance.
Eurobonds
The Eurobonds market slid to a negative close, albeit the bearish theme was less aggressive across the SSA and MENA papers. Consequently, the average mid-yield across the Nigerian curve increased by 14bps to closed at 10.97%.
Outlook: We expect the market focus to tilt to Fed Chair Powell’s speech tomorrow at the Division of Research and Statistics Centennial Conference, in Washington DC.
Equities
The Nigerian equity market closed on a bullish note today, due to strong buying interest on FBNH (+6.35%). The All-Share Index (ASI) appreciated by 0.19%, settling at 70,613.60 points, with a year-to-date return of 37.78%. Market activity was mixed, with 14.90% increase in total volume traded and 29.34% decline in total value traded.
The Industrial, and Consumer Goods Indices appreciated by 0.03% and 0.31%, respectively. The Oil & Gas Index fell by 0.27%. FBNH led both the total volume charts and total value charts with 52.02 million units and ₦1.03 billion.
Outlook: We expect market the bullish sentiment lingers tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 10.78% (or ₦93.77) to $/₦869.91 from $/₦869.91 recorded yesterday.
Outlook: We expect rates volatility to persist.
Commodities
Oil prices hit fresh two and half month lows today as mixed economic data from China offset the impact of Saudi Arabia and Russia extending output cuts. Brent crude oil prices declined by 2.51% to $83.04 per barrel, while West Texas Intermediate (WTI) gained 2.61% to US$78.71 per barrel as of writing time. Similarly, Spot Gold declined by 0.98% to US$1,969.20 per ounce at the time of this report.
Outlook: We expect oil prices to increase in the interim.
