Money Market
System liquidity improved, although it remained negative, with over ₦1.5 trillion exposed to the CBN’s SLF window. Despite this, the Open Repo Rate (OPR) increased by 11 bps to 32.30%, while the Overnight Rate (O/N) settled at 32.68%.
Outlook: We expect the rates to stay elevated due to the liquidity shortage.
Treasury Bills
The treasury bills market experienced limited activity, with minimal selling interest across specific maturities. The average mid-rate for the benchmark NTB papers concluded at 21.14%.
Outlook: We expect that the bearish theme will persist.
FGN Bonds
The local FGN bonds market continued its bearish trend, with higher offer yields seen on April 2029 and February 2031 papers ahead of Monday’s FGN bond auction. However, some demand was observed on February 2034 paper. Overall, the average mid-yield increased by 13 bps, reaching 19.30%.
Outlook: We expect mixed sentiments tomorrow.
Eurobonds
The Eurobonds market showed mixed to bullish sentiments today. There was early strong bullish momentum in Egypt, Nigeria, and Angola due to easing tensions in the Middle East, but it turned bearish by the close of the session due to profit-taking. As a result, the average benchmark yield for Nigerian bonds increased by 4 bps, settling at 9.27%.
Outlook: We expect the same sentiment to persist.
Nigerian Equities
The Nigerian Equities market continued to show positive performance, with the NGX All-Share Index (ASI) and market capitalization increasing by 33 bps to close at 98,540.93 points and ₦56.70 trillion, respectively. This was driven by gains in the share prices of OANDO, ARADEL, ETERNA, GTCO, and ACCESSCORP. The year-to-date ASI growth is now at 31.79%. Sector performance was mixed, with the Oil & Gas and Consumer Goods sectors posting gains while the Insurance and Banking sectors declined. The Industrial Goods sector remained relatively unchanged.
Outlook: We expect a mixed trading session tomorrow.
Foreign Exchange
The Naira depreciated by 6.83% against the USD at the NAFEM window, resulting in an exchange rate of $1 to ₦1,658.97.
Outlook: We anticipate that the volatility will continue.
Commodities
Oil prices declined more than 4% following reports that Israel assured the U.S. it has no plans to target Iran’s oil facilities. This alleviated concerns about a potential disruption in Middle Eastern oil supply. Brent prices decreased by 4.42% to $74.04, and WTI prices saw a 4.67% drop to $70.38. Meanwhile, gold prices rose, supported by falling Treasury yields, as investors awaited further data for insights into the Federal Reserve’s monetary policy. Gold reached $2,680.10 per ounce.
Outlook: We expect the sentiment to persist.
