FIXED INCOME MARKETS
Money Market
System liquidity remained robust at ₦812.76 billion compared to ₦812.76 billion recorded last Friday. Consequently, the Open Repo Rate (OPR) and the Overnight Rate (O/N) plunged by 720bps and 640bps to 7.05%, and 8.50%, respectively.
Outlook: We expect the interbank rates to remain at similar levels tomorrow.
Treasury Bills
The treasury bills witnessed ample demand across the entire curve with very few offers to match the available bids. Notably, buying interests were seen on March to December 2024 papers. As a result, the average mid-rate decline by 91bps to settle at 5.76%.
Outlook: We expect the bullish sentiment to linger tomorrow.
FGN Bonds
Similarly, the FGN local bonds market closed today’s session on a bullish note, given the buyside interests across several papers, including the 2026, 2038, 2042 and 2053 maturities. Overall, the average mid-yield fell by c.36bps to settle at 14.07%.
Outlook: We expect tomorrow’s session to stay bullish.
Eurobonds
The Eurobonds market suffered some selloffs today, as market continue to react to uncertainties as regards the precise time the US Feds will pivot and commence rate cuts. Consequently, the Nigerian curve witnessed average mid-yield increased by 16bps to settle at 10.20%.
Outlook: We expect the bearish theme to persist.
Equities
The Nigerian Equity extended its bullish at the start of the week, with strong demand for TRANSCORP (+9.79%), WAPCO (+9.67%), and FCMB (+9.23%). As a result, the ASI appreciated by 0.83%, settling at 80, 328.57 points, while YTD return settled at 7.43%, with total market capitalization at ₦43.96 trillion. Trading activity was positive, as total volume increased by 33.33%, while total value traded increased by 6.48%.
TRANSCORP led both the total volume chart with 298.30 million units and value chart with ₦4.08 billion. All Indices closed in the green. The Banking and Industrial Goods Indices gained 2.23% and 0.67%, while the Consumer Goods and Oil & Gas Indices appreciated by 0.13% and 0.59%, respectively.
Outlook: We expect market to continue to stir bullish.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) appreciated by 1.47% (or ₦12.82) to $/₦856.57 from $/₦869.39 recorded last Friday.
Outlook: The volatility is expected to persist in the interim.
Commodities
Oil declined more than 4% today after Saudi Arabia slashed its prices, raising renewed worries that the market is oversupplied at the same time as demand is weakening. Brent crude was reported at $75.90 per barrel, and West Texas Intermediate (WTI) at $70.71 per barrel, as at printing time. Gold prices increased to $2,040.70 per ounce from the previous day, as of printing time.
Outlook: We expect oil prices to remain volatile in the interim.
