Money Market

Opening system fell slightly by c.3.39% to ₦171.43 billion from ₦177.44 billion recorded yesterday. However, the Open Repo Rate (OPR) and the Overnight Rate (O/N) shed 26bps and 74bps to 15.74%, and 16.21%, respectively.

Outlook: We expect the interbank rates increase tomorrow, as FGN bond auction settlement should drain liquidity.

Treasury Bills

In today’s session, buying interests persisted on the long-dated papers, with few offers. Nevertheless, the average mid-rate closed flat at 9.33%, as players positioned for tomorrow’s auction.

Outlook: We expect activities to be skewed towards the NTB auction tomorrow, as the DMO would be offering treasury bills worth 13.58 billion.

FGN Bonds

Activity in the local bonds market was bullish today, following yesterday’s auction result, where stop rates declined significantly across the on-the-run papers. Consequently, average mid-yield rate shed 52bps to settle at 15.11%.

Outlook: We expect the bullish bias to persist in tomorrow’s session.


The biggest data watch today, the US CPI data, printed lower at 3.10% y/y in November, down from 3.20% y/y in the preceding month. This further boosted confidence for the market, in terms of the US maintaining interest rate at current levels. Overall, market was bullish as forecast (3.10%) aligned with the actual print. However, some profit taking towards the closing bell led to the average mid-yield increasing by 6bps to settle at 10.39%.

Outlook: While market tilt attention to Fed’s interest rate decision tomorrow, activity should stay bullish, pending any major drift in Production Price Index, perhaps, a surprise forward guidance.


The Nigerian equity market nudged higher today, with UBA (+2.65%) and MTNN (+2.08%) being the major bullish mover. The ASI appreciated by 0.33% to 72, 907.26 points, while the YTD performance climbed back to 40.30%, contributing to a total market capitalization of approximately ₦39.35 trillion. Trading activity was mixed, as total volume declined by 14.86%, while total value traded increased by 52.54%.

Further, the total volume and value traded were both led by JBERGER 42.54 million units and ₦1.46 billion, correspondingly. The Banking and Consumer Goods Indices appreciated by 0.67% and 0.01%, respectively, while the Oil & Gas Index fell by 1.03%.  

Outlook: We expect ASI to cross 73,000 points tomorrow.

Foreign Exchange

FMDQ’s Nigeria’s Autonomous Foreign Exchange (NAFEM) slightly depreciated by 0.09% (or ₦0.74) to $/₦865.03 from $/₦864.29 recorded yesterday.

Outlook: The volatility is expected to persist in the interim.


U.S. crude oil prices dropped more than 3% as traders worry that the Federal Reserve does not yet have inflation under control. Brent crude was reported at $73.42 per barrel, and West Texas Intermediate (WTI) at $68.77 per barrel, as at printing time. Similarly, Gold prices fell slightly to $1,997.50 per ounce from the previous day.

Outlook: We expect oil prices to remain volatile in the interim.