FIXED INCOME MARKETS
Money Market
System liquidity opened relatively higher at ₦229.82 billion, increasing by 23.27% from ₦186.43 billion recorded last Friday. Although, the Open Repo Rate (OPR) and Overnight Rate (O/N) expanded by 500bps to 21.58% and 395bps to 21.75%, respectively.
Outlook: We expect the interbank rates to stay elevated in the short-term.
Treasury Bills
Following the OMO bills auction today, the treasury bills market exhibited a calm session, with few interests seen on short-dated bills. At the primary market, the CBN offered ₦300 billion, and sold the same. The papers were issued at 10.00%, 13.50% and 17.50% for the 92-Day, 183-Day, and 365-Day bills, respectively. Post-auction, there was ample demand on the 365-day OMO paper at 10.85% -11.00%. Although, the average mid-rate remained relatively flat at 5.85%.
Outlook: We expect the market to be stirred bullish tomorrow, albeit, at a less aggressive pace.
FGN Bonds
The FGN local bonds market was quiet today, as market players tilted their attention towards the OMO bills auction. Nevertheless, market closed on a bearish note as quotes notched upward towards the end of the session. Thus, the average mid-yield increased by 20bps to close at 14.25%.
Outlook: We expect the mixed sentiment to resurface, pending any surprises.
Eurobonds
The Eurobonds market extended its bullish momentum from Friday’s session, with most bullish sentiment spanning across the belly and long-end of the curve. Consequently, the Nigerian Eurobonds paper closed bullish as average mid-yield declined by 11bps to settle at 9.61%.
Outlook: We expect market activities to dwindle tomorrow, in the absence of any major jitters.
Equities
Nigerian Equity market closed bullish today, following the positive sentiment on tickers like CADBURY (+9.98%), WEMABANK (+9.92%), DANGSUGAR (+8.50%) and NASCON (+8.33%). As a result, ASI appreciated by 1.92%, to settle at 84,640.89 points, while YTD return settled at +13.20% with a total market capitalization of ₦46.32 trillion. Activity was positive with 34.44% increase in total volume and a 21.25% increase in total value traded.
TRANSCORP topped the volume chart with 66.89 million units, while NASCON led in value at ₦1.09 billion. The Banking and Oil & Gas Indices appreciated by 1.30%, and 0.08%, respectively, while the Industrial and Consumer Goods gained 4.40% and 1.78%, respectively.
Outlook: We expect the bullish bias to persist.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) appreciated by 5.79% (or ₦51.59) to $/₦838.95 from $/₦890.54 recorded last Friday.
Outlook: The volatility is expected to persist in the interim.
Commodities
Oil prices slipped today with traders watching out for supply disruption risk in the Middle East following strikes by U.S. and British forces to stop Houthi militia in Yemen from attacking ships in the Red Sea. Brent crude was reported at $77.48 per barrel, and West Texas Intermediate (WTI) at $71.82 per barrel, as at printing time. Gold prices increased to $2,054.90 per ounce from the previous day, as of printing time.
Outlook: We expect oil prices to hover around $70 pb levels in the interim.
