FIXED INCOME MARKETS
Money Market
Opening system liquidity increased significantly today. Thus, the Open Repo Rate (OPR) decreased by 360 bps to 28.70%, and the Overnight Rate (O/N) dropped by 360 bps to 29.38%.
Outlook: We expect interbank rates to hover at similar levels tomorrow.
Treasury Bills
The treasury bills market continued to rally today, resulting in a decrease of the average mid-rate across the benchmark NTB papers by 18 bps to 20.54%.
Outlook: We expect the bullish sentiment to linger.
FGN Bonds
The local FGN bonds market showed a bullish trend, with buying interest in selected papers, although most of the focus was on the FGN bond auction. Overall, the average mid-yield dropped by 5 bps to 19.34%.
Outlook: We anticipate a mixed session tomorrow, following the overallotment at today’s bond auction.
Equities
The Nigerian stock market closed on a negative note, as the All-Share Index fell by 1.36% to reach 95,781.68 points. The year-to-date return and market capitalization settled at 28.10% and ₦54.38 trillion, respectively. GTCO led both the highest volume and values charts with 59.25 million units and ₦2.73 billion.
Outlook: We expect a similar session tomorrow.
Foreign Exchange
Naira appreciated against the USD by 0.04% to $/₦1,579.22.
Outlook: We expect volatility to persist.
Eurobonds
Today, the Eurobonds market experienced a bullish trend. Overall, the average mid-yield for Nigerian papers decreased by 7 bps to 10.16%.
Outlook: We expect the bullish trend to persist tomorrow.
Commodities
Crude oil prices fell today as the U.S. continued to push to secure a cease-fire deal to end the fighting in Gaza, and worries about softening demand weighed on the market. Brent prices declined by 2.71% to $77.52, while WTI prices lost 3.07% to $74.30. Elsewhere, gold prices increased by 0.16% to $2,541.90 per ounce..
Outlook: We expect the volatility to persist.
