Money Market
Liquidity in the financial system remained very tight as it further plunged into negative territory today. Funding costs across banks also increased as a result. Specifically, the Open Repo Rate (OPR) and the Overnight Rate (O/N) rose by 20 bps and 22 bps to 32.50% and 32.90%, respectively.
Outlook: We anticipate that the interbank rates will remain high despite tomorrow’s expected FGN bond coupon.
Treasury Bills
Activity in the treasury bills market was quiet, with a mixed to bearish undertone. There was little demand for the 27th of March 2025 paper, but sellers offered some September 2025 papers. Overall, the average mid-rate for the benchmark NTB papers settled at 21.07%.
Outlook: We expect the mixed-to-bearish trend to continue.
FGN Bonds
The local FGN bonds market had a mixed performance. There was initial selling interest in the Feb 2031 paper, but this was followed by renewed buying by investors looking to take advantage of its attractive yield. As a result, the average mid-yield settled at 19.30%.
Outlook: We expect mixed sentiments to persist tomorrow, supported by the coupon inflows.
Eurobonds
The Eurobonds market ended on a negative note as selling pressure affected the Nigeria and Angola bonds. However, there was good buying interest in the Egypt bonds due to positive developments such as reduced tensions in the Middle East and a mutual investment agreement with Saudi Arabia. Consequently, the average benchmark yield for Nigerian bonds slightly increased, reaching 9.28%.
Outlook: We anticipate that the mixed theme will continue.
Nigerian Equities
The Nigerian Equities market ended its 3-day bullish streak as the NGX All-Share Index (ASI) dropped by 25 bps to close at 98,291.53 points. This decline was due to selloffs in ARADEL, OKOMUOIL, and NESTLE, which offset buying interest in OANDO, DANGSUGAR, and GTCO. The year-to-date ASI growth is now at 31.45%. Sector performance was mixed, with the Oil & Gas, Consumer Goods, and Insurance Indices posting gains while Banking and Industrial Goods indices declined.
Outlook: We expect a mixed trading session tomorrow.
Foreign Exchange
The Naira experienced a slight depreciation of 4 bps against the USD at the NAFEX window, settling at $/₦ 1,659.69.
Outlook: We anticipate that the volatility will continue.
Commodities
Reports that Israel will not launch an attack on Iran’s oil facilities led to a slight decline in oil prices. Brent prices fell by 0.01% to $74.25, while WTI dropped by 0.22% to $70.23. Meanwhile, gold prices surged to near-record highs due to increased non-yielding bullion, supported by weakening U.S. bond yields and anticipated interest rate reductions by major central banks. Ongoing geopolitical tensions also provided additional safe-haven appeal. Gold reached $2,691.50 per ounce.
Outlook: We expect the sentiment to persist.
