FIXED INCOME MARKETS
Money Market
The Open Repo Rate (OPR) increased by 357 bps to 21.68%, and the Overnight Rate (O/N) rose by 224 bps to 22.30%.
Outlook: We expect interbank rates to stay at similar levels tomorrow, pending any major flows.
Treasury Bills
The treasury bills market had a mixed to bearish session today, with the average mid-rate increasing by 2 bps to 18.49%. Yields on most of the longer-term papers trended upwards due to the OMO auction conducted by the CBN.
The CBN offered ₦500.00 billion but sold ₦459.60 billion worth of bills. The stop rate for the long-dated paper was 21.80%, a 7-bp decline from the previous stop rate.
Outlook: We expect the same sentiment to linger tomorrow, albeit, at a less aggressive pace.
FGN Bonds
Today, there was a positive trend in the local FGN bonds market, with most of the interest directed towards the 2031 and May 2033 papers. Overall, the average mid-yield dropped by 14 bps to 18.01%.
Outlook: We expect a similar trajectory tomorrow.
Equities
The Nigerian stock market ended on a positive note today, with the All-Share Index rising by 0.22% to reach 96,793.95 points. The year-to-date return and market capitalization stood at 29.45% and ₦55.60 trillion, respectively. UBA topped the volume charts with 54.85 million, while OANDO led the value charts with ₦3.20 billion.
Outlook: We expect the bullish bias to persist.
Foreign Exchange
Naira appreciated against the USD by 0.80% to $/₦1,585.77.
Outlook: We expect volatility to persist.
Eurobonds
The African Eurobonds market posted a bearish bias today, amid the US labour holiday. Overall, the average mid-yield increased by 6bps to 9.67%.
Outlook: We expect activity to resume fully tomorrow, with investors’ focus skewed to the US ISM Manufacturing data.
Commodities
Earlier today, crude oil prices extended their losses due to higher OPEC+ production in October and a sharp drop in output from Libya, along with sluggish demand in China and the U.S. However, the market rebounded towards the close of trading. Brent prices increased by 0.62% to $76.71, while WTI prices gained 0.94% to reach $74.24. Gold prices also increased by 0.22% to $2,533.10 per ounce.
Outlook: We expect the volatility to persist.
