Money Market
System liquidity opened lower today compared to the previous day. As a result, the Open Repo Rate (OPR) and the Overnight Rate (O/N) increased by 94 bps and 96 bps to 28.98% and 29.68%, respectively.
Outlook: We anticipate that interbank rates will increase tomorrow as the CBN plans to sell ₦500 billion worth of OMO securities.
Treasury Bills
The treasury bills market closed bearish, with most selling interests focused on select maturities, particularly 27-Mar-2025, 10-Apr-2025, and Sept-2025. Overall, the average mid-rate for the benchmark NTB increased by 36 bps to 20.83%.
Outlook: We expect the rates to trend higher due to the expected OMO auction.
FGN Bonds
The local FGN bonds market activity was bullish, with buying interest in specific maturities. In particular, a few players demanded the new Apr 2029, Feb 2031, May 2033, Mar 2050, and Jun 2053 bonds. As a result, the average mid-yield decreased slightly to close at 18.91%.
Outlook: We expect a mixed theme tomorrow.
Eurobonds
The Eurobonds market started the month on a bearish note, with selling interests across the major African curves. Overall, the average benchmark yield across Nigerian papers increased by 3 bps to 9.50%.
Outlook: The market will closely monitor the upcoming jobs report and the situation in the middle east.
Nigerian Equities
The Nigerian Equity market started the month with a bearish start, as the NGX-ASI dropped by 33bps to 98,232.39 points, and market capitalization declined to ₦56.44 trillion. Profit-taking in OANDO, UBA, FBNH, ACCESSCORP, MTNN, and GTCO contributed to this decline, reducing the year-to-date ASI growth to 31.37%. While three sectors posted gains, the Banking and Oil and Gas sectors recorded losses.
Outlook: We expect a mixed play tomorrow.
The Naira’s volatility continued at the beginning of the month, as it depreciated by 8.25% against the USD at the NAFEM window, closing at $1 to ₦1,669.15.
Outlook: We anticipate that the volatility will continue.
Commodities
Oil prices rose by over 1% but came off session highs as a bearish U.S. inventory build offset support from escalating tensions in the Middle East. At the time of the report, Brent prices had increased by 0.45% to $73.94, while WTI prices saw an increase of 0.60% to $70.26. Gold prices eased after rallying in the previous session due to an escalation in the Middle East conflict. Traders were waiting for more clues on U.S. interest rates. Gold reached $2,670.90 per ounce.
Outlook: We expect the volatility to persist.