FIXED INCOME MARKETS
MONEY MARKETS
System liquidity remained negative. Thus, the Open Repo Rate (OPR) increased by 45 bps to 31.85%, while the Overnight Rate (O/N) increased by 30 bps to 32.43%.
Outlook: We expect interbank rates to hover around similar levels tomorrow.
Treasury Bills
The treasury bills market closed slightly bullish today, as players reacted mildly to the “no-sale“ outcome at the OMO auction. Thus, the average mid-rate across the benchmark NTB papers declined by 9 bps to 22.09%.
Outlook: We expect a mixed sentiment tomorrow.
FGN Bonds
The local FGN bonds market traded mixed sentiments, with pockets of interests across selected papers. Overall, the executed volumes were few and far between, leading to the average mid-yield staying unchanged at 19.22%.
Outlook: We expect a similar trading session tomorrow
Equities
The Nigerian equity market closed on a bearish note, as the All-Share Index shed 0.04% to settle at 100,032.32 points. The year-to-date return and market capitalization closed at 33.78% and ₦56.65 trillion, respectively. JAIZBANK led the volumes chart with 528.49 million units, while ZENTIHBANK topped the values chart with ₦1.15 billion, respectively.
Outlook: We expect the mixed sentiment to persist.
Foreign Exchange
Naira depreciated against the USD by 0.32% to $/₦1,581.65.
Outlook: We expect volatility to persist.
Eurobonds
The Eurobonds market in SSA experienced a downward price trend today due to the US Housing Stat data, which indicated a figure of 1.35 million, surpassing the estimated 1.30 million and the 1.31 million reported in the previous month. Consequently, the average mid-yield for the Nigerian curve rose by 17bps to reach 9.78%.
Outlook: We expect tomorrow’s sentiment to be guided more other economic data and market-moving events tomorrow.
Commodities
Today, oil prices increased due to a drop in U.S. oil inventories and a weaker dollar, which outweighed indications of reduced demand in China. Consequently, Brent prices rose by 1.48% to $84.97, while WTI prices climbed 2.25% to $82.58. In the same period, the price of gold declined by 0.42% to $2,457.50 per ounce.
Outlook: We expect the volatility to persist.
