FIXED INCOME MARKETS
Money Market
Opening System liquidity declined by 50.53% to c.₦269.51 billion from ₦544.82 billion recorded yesterday amid the recent round of CRR debit across commercial banks. Thus, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 18bps and 13bps to 16.50% and 17.42%, respectively.
Outlook: We expect the interbank rates to close at similar levels tomorrow.
Treasury Bills
The treasury bills market traded on a quiet note, with mild interests around the belly and long end of the curve, as market tilted activity towards today’s NTB primary market auction. Consequently, the average mid-rate increased by 2bps to 11.91%.
Outlook: We expect the treasury bills auction result to impact the market tomorrow.
FGN Bonds
The local FGN bonds market also witnessed a muted theme, albeit with a bearish undertone, as few selling interests were observed across the 2038 and 2053 papers. Overall, the average mid-yield stayed relatively flat to settle at 16.04%.
Outlook: We expect market activity to be partly influenced by the NTB auction result.
Eurobonds
Activity in the Eurobonds market settled on a bullish note across most papers in the SSA and MENA regions, with a fair share of buyside activity from local and offshore players. However, it was a bearish affair across the Kenyan curve amid the recent downgrade by Fitch Ratings. Broadly, the average mid-yield across the Nigerian curve fell by 1bp to closed at 10.92%.
Outlook: We expect the market to continue to be swerved by global headwinds.
Equities
The Nigerian equity market closed on a bullish note today, due to strong buying interest on several tickers, including JAPAULGOLD (+9.87%), UBA (+1.47%) and FBNH (0.52%). The All-Share Index (ASI) appreciated by 0.23%, settling at 70,773.31 points, with a year-to-date return of 38.09%. Market activity was positive, with 24.27% increase in total volume traded and 79.88% increase in total value traded.
The Banking, Industrial, and Oil & Gas Indices appreciated by 0.26%, 0.84%, and 0.27%, respectively, while the Consumer Goods Index fell by 0.37%. FBNH led both the total volume charts and total value charts with 209.89 million units and ₦4.04 billion.
Outlook: We expect market the bullish sentiment lingers tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 0.55% (or ₦4.80) to $/₦874.71 from $/₦869.91 recorded yesterday.
Outlook: We expect rates volatility to persist.
Commodities
Oil prices slumped further on concern over waning demand in the United States and China. Brent crude oil prices declined by 2.68% to $79.42 per barrel, while West Texas Intermediate (WTI) gained 2.86% to US$75.16 per barrel as of writing time. Similarly, Spot Gold declined by 0.70% to US$1,956.60 per ounce at the time of this report.
Outlook: We expect oil prices to remain volatile.
