Money Market

System liquidity showed a slight improvement but remained negative. Nonetheless, the Overnight Policy Rate (OPR) and Overnight Rate (O/N) increased by 11 bps, closing at 32.36% and 32.61%, respectively.

Outlook: We anticipate that interbank rates will stay high due to the debit from the FGN bond auction.

Treasury Bills

The Treasury bill market experienced a calm session today, showing a slight bearish trend. There was steady interest in specific maturities, particularly those maturing in April, May, and October 2025. Overall, the average mid-rate for the benchmark NTB settled at 21.29%. 

Outlook: We anticipate a calm session tomorrow as investors focus on the NTB auction, where the DMO will offer ₦374.67 billion across the usual tenors.

FGN Bonds

The local FGN bonds market experienced mixed sentiments today, with most activity concentrated on the Feb 2031 paper. Overall, the average mid-yield rose by 4 bps to 19.30%. 

Outlook: We anticipate a mixed to bearish theme tomorrow

Eurobonds

The Eurobond market continued its bearish trend today, with increased selling activity observed in the sovereign bonds of Nigeria, Angola, and Egypt. Consequently, the average mid-yield for Nigerian bonds rose by 14 bps to 9.59%.

Outlook: We anticipate that the same sentiment will continue tomorrow.

Nigerian Equities

The Nigerian stock market closed on a bullish note today, with the NGX-ASI increasing by 20 bps to close at 98,892.58 points, while market capitalization rose to ₦56.92 trillion. Key contributors to this positive performance included TRANSCOHOT, GTCO, and UBA. Among sector performances, the Insurance Index gained 1.22%, while the Banking sector increased by 0.91%. However, the Consumer Goods and Oil and Gas sectors saw declines.

Outlook: We expect the same sentiment to persist.

Foreign Exchange

The value of the Naira fell by 3.11% against the USD at the NAFEM window, finishing at $/₦1,653.02.

Outlook: We anticipate that the volatility will continue.

Commodities

Today, oil prices continued to rise as traders grew more optimistic about the stability of supply in the Middle East amid tensions between Israel and Iran. Brent crude increased to $75.85, while WTI rose to $72.24. Meanwhile, gold reached a new record high, driven by safe-haven buying due to uncertainties surrounding the U.S. elections and ongoing conflicts in the Middle East. Currently, gold is trading at approximately $2,760.40 per ounce.

Outlook: We expect the sentiment to persist.

Leave a Reply

Your email address will not be published. Required fields are marked *