FIXED INCOME MARKETS
Money Market
Opening system liquidity stayed positive today. Thus, the Open Repo Rate (OPR) decreased by 173 bps to 32.44%, and the Overnight Rate (O/N) dropped by 184 bps to 33.22%.
Outlook: We expect opening system liquidity to remain positive tomorrow.
Treasury Bills
The treasury bills market closed bullish today. Consequently, the average mid-rate across the benchmark NTB papers decreased by 33 bps to 20.90%.
Outlook: We expect the bullish sentiment to linger.
FGN Bonds
The local FGN bonds market witnessed a bullish posture, with buying interests on selected papers. Overall, the average mid-yield fell by 9 bps to 19.43%.
Outlook: We expect the current trend to persist tomorrow.
Equities
The Nigerian stock market closed on a negative note, with the All-Share Index falling by 0.10% to reach 97,100.36 points. The year-to-date return and market capitalization settled at 29.86% and ₦55.13 trillion, respectively. VERITASKAP led the highest volume charts with 33.38 million units, while GTCO led the values chart ₦725.23 million.
Outlook: We expect a similar session tomorrow.
Foreign Exchange
Naira appreciated against the USD by 1.36% to $/₦1,564.48.
Outlook: We expect volatility to persist.
Eurobonds
The Eurobonds market experienced a mixed-to-bearish trend today, with increased activity in most African papers. Additionally, US retail sales saw a 1.0% increase (Estimated at 0.30%), compared to the -0.20% as shown in the preceding data. Furthermore, the US Initial Jobless Claims were reported at 227k (Est. 234k), lower than the previous reading of 233k. Overall, the average mid-yield for Nigerian papers increased marginally by 1 bp to 10.34%.
Outlook: We anticipate the bullish sentiment to persist.
Commodities
Strong US retail sales for July and declining jobless claims gave investors renewed confidence in the U.S. economy. Thus, Brent prices increased by 1.91% to $81.27, while WTI prices gained 1.88% to $78.43. Elsewhere, gold prices increased by 0.65% to $2,495.50 per ounce.
Outlook: We expect the volatility to persist.
