FIXED INCOME MARKETS
MONEY MARKETS

Opening system liquidity remained at a deficit balance today. Consequently, the Open Repo Rate (OPR) increased by 22 bps to 31.92%, while the Overnight Rate (O/N) increased by 16 bps to 32.44%.

Outlook: We expect interbank rates to remain elevated tomorrow.

Treasury Bills

The treasury bills market closed bearish today, with selling interest observed around the belly and long end of the curve. Average mid-rate increased by 8bps to 21.24%.

Outlook: We expect a bearish sentiment to persist in the interim.

FGN Bonds

The local FGN bonds market had a calm trading session today, with minimal interests on 2033 and 2053, amongst other papers. Thus, average mid-yield remained unchanged at 18.93%. 

Outlook: We expect a similar trend tomorrow.

Equities

The Nigerian equity market closed bearish today, as the All-Share Index declined by 0.24% to 100,063.32 points. The year-to-date return and market capitalization settled at 33.82% and ₦56.60 trillion, respectively. Market breadth showed a ratio of 0.96x, with 24 advancers and 25 decliners. FIDELITYBK led both the volumes and values chart with 539.39 million and ₦5.66 billion, respectively.

Outlook: We expect the mixed sentiment to persist.

Foreign Exchange

Naira depreciated against the USD by 0.50% to $/₦1,520.24.

Outlook: We expect volatility to persist.

Eurobonds

The African Eurobonds market was less active due to the US holiday, but closed slightly bullish. At the end of trading, the average mid-yield for the Nigerian curve fell by 5bps to 10.00%.

Outlook: We expect the US Non-Farm Payroll to impact market sentiment tomorrow.

Commodities

Oil prices fell today after the U.S. employment and business activity data came in weaker than expected, in signs the economy may be cooling in the world’s top oil consuming nation. Brent prices rose by 0.11% to reach $87.44, while WTI prices increased by 0.06% to $83.94. Additionally, gold prices decreased by 0.05% to $2,368.60 per ounce at the time of this report.

 OutlookWe expect the volatility to persist.