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.