Money Market
System liquidity declined today due to the FGN bond auction debit. However, the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) fell by 1.95% and 1.83%, settling at 30.41% and 30.78%, respectively.
Outlook: We anticipate that the liquidity situation will improve due to the expected inflows from FAAC.
Treasury Bills
Activity in the Treasury bills market remained calm as investors focused on the NTB auction. However, there was some interest in specific papers maturing in April and September 2025. Overall, the average mid-rate for the benchmark NTB rose by 11 bps, closing at 21.41%.
Outlook: We expect a mixed session tomorrow, influenced by the results of the NTB auction.
FGN Bonds
The local FGN bonds market experienced mixed sentiments today but ultimately ended on a slightly bullish note. Most of the activity focused on the February 2031 and May 2033 bonds, as investors capitalized on the attractive yields offered by these securities. Overall, the average mid-yield settled at 19.28%.
Outlook: We expect the same sentiment to persist tomorrow.
Eurobonds
The Eurobond market continued its downward trend, resulting in declining prices for African bonds. As a result, the average mid-yield for Nigerian bonds increased by 2 bps, reaching 9.61%.
Outlook: We anticipate that the same sentiment will continue tomorrow.
Nigerian Equities
The Nigerian stock market continued its upward momentum, with the NGX-ASI rising by 5 bps to close at 98,944.42 points, while the market capitalization climbed to ₦59.95 trillion. This positive trend was driven by strong buying interest in OANDO and several banking stocks, including FBNH, ZENITHBANK, and UBA. Regarding sector performance, the Banking index led the gains at 2.41%, followed by the Consumer Goods and Industrial Goods sectors. Meanwhile, the Insurance index declined, and the Oil and Gas index remained unchanged.
Outlook: We expect the same sentiment to persist.
Foreign Exchange
At the NAFEM window, the naira’s value depreciated 6 bps against the USD, closing at $/₦1,654.09.
Outlook: We anticipate that the volatility will continue.
Commodities
Oil prices declined today after industry reports indicated that U.S. crude stockpiles increased more than anticipated. However, futures are still up by about 2% for the week as traders consider the ongoing conflict in the Middle East. Brent crude is now priced at $74.84, while WTI has fallen to $70.63. Similarly, gold prices dropped over 1% after reaching a record high. This decline was driven by a stronger dollar and rising U.S. Treasury yields, which overshadowed safe-haven demand linked to the upcoming U.S. election on November 5 and the situation in the Middle East. Gold is trading at around $2,727.20 per ounce.
Outlook: We expect the sentiment to persist.
