FIXED INCOME MARKETS
Money Market
Opening System liquidity declined by 43.52% to c.₦152.23 billion from ₦269.51 billion recorded yesterday. Thus, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 38bps and 21bps to 16.88% and 17.63%, respectively.
Outlook: We expect the interbank rates to remain elevated tomorrow.
Treasury Bills
The treasury bills market saw a significant increase in rates across various maturities after yesterday’s NTB auction, with particular attention on the 1-year paper (07-Nov-2024), which opened at a bid rate of 16.30%. Nevertheless, by midday, there was some buying interest in the 07-Nov-2024 bill as investors cherry-picked the attractively priced paper, leading to trades occurring between 16.15% and 15.65%. In the end, the average mid-rate surged by 61bps, settling at 12.66%.
Outlook: We expect a mixed theme tomorrow.
FGN Bonds
The local FGN bonds market was calm today, with a bearish backdrop, as market anticipates a possible increase in rates at the next bond auction scheduled for next Monday (13-Nov-2023). Overall, the average mid-yield increased by c.10bps to settle at 16.13%.
Outlook: We expect market players to trade cautiously in tomorrow’s session.
Eurobonds
The Eurobonds market had a bearish day, marked by selling activity in SSA and North African bonds, as market participants shifted their attention towards upcoming speeches by ECB President Lagarde and Fed Chair Powell later today. Consequently, the average mid-yield across the Nigerian curve increased by 27bps to closed at 11.19%.
Outlook: We expect activity to be driven by the tone of the ECB president and Fed Chair speeches.
Equities
The Nigerian equity market closed on a bullish note today, as buying interest on FIDELITYBK (+4.40%), and FBNH 3.36%) impacted the market. The All-Share Index (ASI) appreciated by 0.07%, settling at 70,819.49 points, with a year-to-date return of 38.18%. Market activity was positive, with 1.94% increase in total volume traded and 71.44% increase in total value traded.
The Banking Index appreciated by 0.21%, while Industrial, and Consumer Goods Indices depreciated by 0.02% and 0.06%, respectively. The Oil & Gas Index closed flat. JAPAULGOLD led the total volume charts with 113.97 million units, while STANBIC led the total value charts with ₦6.77 billion.
Outlook: We expect market the bullish sentiment ease tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 12.24% (or ₦122.04) to $/₦996.75 from $/₦874.71 recorded yesterday.
Outlook: We expect rates volatility to persist.
Commodities
Oil prices edged up on Thursday as markets shrugged off deflationary indicators in China and looked for further clues on the status of demand from the world’s two biggest oil consumers.. Brent crude oil prices appreciated by 2.14% to $81.24 per barrel, while West Texas Intermediate (WTI) gained 2.11% to US$76.92 per barrel as of writing time. Similarly, Spot Gold declined by 0.37% to US$1,965.20 per ounce at the time of this report.
Outlook: We expect oil prices to remain volatile.
