FIXED INCOME MARKETS
MONEY MARKETS
Opening system liquidity returned to its negative territory at -₦46.00 billion from ₦170.43 billion reported last week Friday, following the settlement of the OMO auction. Nevertheless, the Open Repo Rate (OPR) contracted by 171 bps to 30.69% while the Overnight Rate (O/N) declined by 156 bps to 31.44%.
Outlook: We expect interbank rates to hover at similar bands tomorrow.
Treasury Bills
The treasury bills market saw some selective buying in the middle and long-term maturities, although the pace was less aggressive. Overall, the market ended on a positive note, with the average mid-rate falling by 8 bps to 20.22%.
Outlook: We expect the bullish sentiment to ease tomorrow.
FGN Bonds
The local FGN bonds displayed a similar trend, with significant interest in the 2049, 2050 and 2053 maturities. At the close of the market, it settled slightly bullish, with the average mid-yield decreasing by 3bps to close at 18.47%.
Outlook: We expect a calm session tomorrow.
Equities
The Nigerian stock market ended on a positive note, with increased buying in banking stocks such as FIDELITYBK (+8.43%), UBA (+5.73%), and ACCESSCORP (3.35%). The market breadth was negative at 0.68X, indicating 15 advancers and 22 decliners. The All-Share Index rose by 0.26% to close at 97,863.34 points. The year-to-date return and market capitalization were at 30.88% and ₦55.36 trillion, respectively. Total volume and value trades decreased by 52.28% and 62.27%, respectively.
Furthermore, the Banking, Consumer Goods, and Oil & Gas Indices increased by 2.45%, 0.15%, and 1.02%, respectively, while the Industrial Goods Index remained unchanged. ACCESSCORP topped both the volume and value charts with 176.23 million units and ₦2.99 billion, respectively.
Outlook: We expect similar trend tomorrow.
Foreign Exchange
FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) appreciated by ₦143.48 (or 9.68%) to $/₦1,339.33 compared to $/₦1,482.81 recorded last week Friday.
Outlook: We expect volatility to persist.
Eurobonds
Today, the African Eurobonds market witnessed a quiet session, given the US Memorial Holiday. Overall, the average mid-yield of Nigeria’s curve remained relatively unchanged at 9.77%.
Outlook: We expect activities to improved tomorrow.
Commodities
Today, oil prices rose as markets anticipated the outcome of the OPEC+ meeting scheduled for June 2, where producers are expected to discuss maintaining voluntary output cuts for the rest of the year. Brent oil increased by 1.23% to $83.13 per barrel, while WTI rose by 1.33% to $78.76 per barrel. Similarly, the price of gold increased by 0.89% to $2,355.00 per ounce at the time of writing.
Outlook: We expect the volatility to persist.
