FIXED INCOME MARKETS

Money Market

The Open Repo Rate (OPR) increased by 129 bps to 22.97%, and the Overnight Rate (O/N) rose by 123 bps to 23.53%.

Outlook: We expect interbank rates to remain elevated tomorrow, in the absence of any major flows.

Treasury Bills

The treasury bills market trended bullish today, suggesting market expectation for a drop in stop rates at tomorrow’s primary market auction. Consequently, average mid-rate declined by 41bps to 18.08%.

Outlook: We expect the outcome of the treasury bills auction and tomorrow’s liquidity to impact the market. The DMO would be offering T-bills worth N233.31 billion tomorrow.

FGN Bonds

The local FGN bonds market had a bullish posture, with average mid-yield falling by 5bps to 17.96%.

Outlook: We expect a similar trajectory tomorrow.

Equities

The Nigerian stock market closed on a positive note today, with the All-Share Index increasing by 0.08% to reach 96,873.74 points. The year-to-date return and market capitalization were at 29.56% and ₦55.65 trillion, respectively. ACCESSCORP had the highest trading volume with 106.28 million, while OANDO led in terms of trade value with ₦4.32 billion.

Outlook: We expect the bullish bias to persist.

Foreign Exchange

Naira depreciated against the USD by 1.61% to $/₦1,611.34.

Outlook: We expect volatility to persist.

Eurobonds

The African Eurobonds market ended the session bearish as the US ISM manufacturing data increased to 47.20%, higher than July’s 46.80% but less than the estimated 47.90%. Overall, the average mid-yield increased by 19 bps to 9.86%.

Outlook: We expect any surprises from Fed Beige Book and Job openings to impact the market tomorrow.

Commodities

Crude oil prices dropped today, wiping out all gains for the year due to a potential increase in supplies and a decrease in demand. Brent prices decreased by 4.42% to $74.09, while WTI prices fell by 3.89% to $70.69. Additionally, gold prices also saw a decline of 0.41%, reaching $2,517.30 per ounce.

 Outlook: We expect the volatility to persist.