FIXED INCOME MARKETS
Money Market
Opening System liquidity declined by 27.78% to c.₦229.17 billion from ₦317.32 billion recorded last Friday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 34bps and 32bps to 16.92% and 17.90%, respectively.
Outlook: We expect the interbank rates to remain elevated tomorrow.
Treasury Bills
The treasury bills market witnessed a calm theme, albeit with a bullish undertone particularly across July and November 2024 papers. At the closing bell, average mid-yield remained unchanged at 11.67%.
Outlook: We expect a mixed theme tomorrow.
FGN Bonds
The FGN bonds market experienced subdued activity, with attention centered on the FGN bond auction. While a few selling interests were noted in the on-the-run papers, actual trading remained minimal. Despite the limited activity, the average mid-yield saw a decrease of 9bps, settling at 15.93%.
Outlook: We expect a mixed to bearish session tomorrow, given the upsurge in stop rates in today’s FGN bond auction.
Eurobonds
The Eurobonds market experienced a mixed session, characterized by some selling interests in most Sub-Saharan African (SSA) papers, offset by buying interest in the Egypt curve. As a result, the average mid-yield across the Nigerian curve rose by 8 basis points, closing at 11.40%.
Outlook: We expect activity to be driven by the US’ October Consumer Price Index tomorrow.
Equities
The Nigerian equity market closed on a bearish note today, as selling interest on BUACEMENT (-7.76%), negatively impacted the market. The All-Share Index (ASI) lost 0.33%, settling at 70,612.81 points, with a year-to-date return of 37.78%. Market activity was mixed, with 14.79% decline in total volume traded and 39.35% increase in total value traded.
The Banking Index appreciated by 0.38%, while Industrial, Consumer Goods and Oil & Gas Indices depreciated by 0.09%, 0.02% and 0.89%, respectively. LASACO led the total volume charts with 164.73 million units, while UCAP led the total value charts with ₦1.28 billion.
Outlook: We expect the bearish sentiment to persist.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) depreciated by 2.42% (or ₦19.27) to $/₦795.41 from $/₦776.14 recorded last Friday.
Outlook: We expect the volatility to persist.
Commodities
Oil prices showed volatility amid renewed concerns about demand in the United States and China, combined with mixed signals from the U.S. Federal Reserve, contributing to market uncertainty. Brent crude oil prices rose by 0.91% to $82.17 per barrel, and West Texas Intermediate (WTI) gained 0.88% to reach US$77.85 per barrel at the time of the report. In contrast, Spot Gold experienced a slight decline, down by 0.08% to US$1,939.20 per ounce.
Outlook: We expect oil prices to remain volatile.
