FIXED INCOME MARKETS
MONEY MARKETS
System liquidity opened with a negative balance. Nonetheless, the Open Repo Rate (OPR) decreased by 7 bps to 31.40%, while the Overnight Rate (O/N) lost 6 bps to 32.13%.
Outlook: We expect interbank rates to stay elevated tomorrow.
Treasury Bills
The treasury bills market closed slightly bullish today, amidst mild buying interest on the long end of the curve. Thus, the average mid-rate declined marginally by 1 bp to 22.18%.
Outlook: We expect market to see a calm session with a bearish undertone tomorrow, as the CBN would be offering ₦150.00 billion OMO bills.
FGN Bonds
The local FGN bonds market also experienced a muted session. Consequently, the average mid-yield increased by 2 bps to 19.22%.
Outlook: We expect a similar trading session tomorrow.
Equities
The Nigerian equity market closed on a bullish note, as the All-Share Index gained 0.11% to settle at 100,075.59 points. The year-to-date return and market capitalization closed at 33.84% and ₦56.67 trillion, respectively. ZENITHBANK led both the volumes and values chart with 57.42 million units and ₦2.25 billion, respectively.
Outlook: We expect the mixed sentiment to persist.
Foreign Exchange
Naira appreciated against the USD by 0.04% to $/₦1,576.66.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds had a mixed trading session today following the flat US retails sales data. While Nigeria’s curve was mixed, Angola and Egypt’s papers was mostly bearish. Overall, the average mid-yield for the Nigerian curve declined slightly by 2 bps to 9.61%.
Outlook: We expect the mixed sentiment to persist tomorrow.
Commodities
Oil prices declined today on worries of a slowing Chinese economy crippling demand despite the growing consensus that the U.S. Federal Reserve could begin cutting its key interest rate as soon as September. As a result, Brent prices decreased by 1.39% to $83.27, while WTI prices decreased by 1.55% to $80.64. Additionally, gold prices gained 1.68% to $2,469.50 per ounce at the time of this report.
Outlook: We expect the volatility to persist.
