FIXED INCOME MARKETS

Money Market

The Open Repo Rate (OPR) increased by 271 bps to 31.10%, and the Overnight Rate (O/N) rose by 242 bps to 31.60%.

Outlook: We expect interbank rates to stay elevated tomorrow.

Treasury Bills

The treasury bills market closed slightly bullish today, with most activity concentrated around the belly and long end of the curve. Consequently, average mid-rate declined by 6bps to 17.91%. 

Outlook: We expect tomorrow’s session to be mixed.

FGN Bonds

The local FGN bonds market had a quiet session today. As a result, market closed flat and the average mid-yield remained unchanged at 17.98%. 

Outlook: We expect a mixed trading session tomorrow.

Equities

The Nigerian stock market closed bearish today, with the All-Share Index falling by 0.34% to reach 96,210.20 points. The year-to-date return and market capitalization were at 28.67% and ₦55.27 trillion, respectively. ZENITHBANK had the highest trading volume 56.56 million while OANDO topped the values chart with ₦3.18 trillion.

Outlook: We expect the bearish bias to persist.

Foreign Exchange

Naira depreciated against the USD by 0.83% to $/₦1,639.41.

Outlook: We expect volatility to persist.

Eurobonds

The African Eurobonds market was mixed to bearish today, amidst the expectation for a rate cut, given the ADP Employment data, which increased by 99k, lower than both 114k estimate and 111k reported in the previous month. Thus, the average mid-yield across the Nigerian curve rose by 6 bps to 9.78%.

Outlook: We expect the Non-Farm Payroll data to impact market sentiment tomorrow.

Commodities

Crude oil prices increased today, as OPEC+ delays plans to boost production after prices tumbled. Brent prices increased by 0.76% to $73.25, while WTI prices rose by 0.87% to $69.80. However, gold prices gained 0.47%, reaching $2,537.80 per ounce.

 Outlook: We expect the volatility to persist.