FIXED INCOME MARKETS
Money Market
Opening system liquidity decreased slightly by c.0.76% compared to Friday’s balance. However, the Open Repo Rate (OPR) declined by 21 bps to 25.40%, while the Overnight Rate (O/N) decreased by 26bps to 25.80%.
Outlook: We expect slight changes in interbank rates tomorrow.
Treasury Bills
The treasury bills market was mixed-to-bearish today with selling interest predominantly seen across the mid to long dated papers. At the end of trading, the average mid-rate across the benchmark NTB papers increased by 91bps to 23.17%.
Outlook: We expect a similar occurrence tomorrow.
FGN Bonds
The local FGN bond market was relatively quiet today. Although, market settled slightly bearish, with the average mid-yield increasing marginally by 1bp to 19.64%.
Outlook: We expect market to trend sideways tomorrow.
Equities
The Nigerian stock market closed bearish, as the All-Share Index decreased by 0.17% to reach 97,582.41 points. The year-to-date return and market capitalization settled at 30.50% and ₦55.40 trillion, respectively. ZENITHBANK recorded the highest trading volume with 36.99 billion units, as well as the highest value chart with ₦1.33 billion.
Outlook: We expect the bearish theme to linger.
Foreign Exchange
Naira appreciated against the USD by 0.61% to $/₦1,607.15.
Outlook: We expect volatility to persist.
Eurobonds
The Eurobonds market experienced selloffs across the curve, in tandem with global headwinds. Consequently, the average mid-yield for the Nigerian papers increased by 47bp to 10.81%.
Outlook: We expect the bearish sentiment to persist tomorrow.
Commodities
Crude oil declined today on fears the economy might be teetering on the brink of a recession. Brent prices decreased by 0.59% to $76.36, while WTI prices fell by 0.73% to $72.98. Gold prices eased in volatile trading today as investors liquidated positions in tandem with a broader equity sell-off. The price of gold decreased by 0.99% to $2,445.20 per ounce.
Outlook: We expect the volatility to persist.
