Money Market
System liquidity declined significantly today due to the settlement of the FGN bond auction winnings, which amounted to c.₦346 billion, and the CBN’s FX intervention settlement. As a result, interbank rates increased significantly, with the Overnight Policy Rate (OPR) climbing by 6.63% to 31.70% and the Overnight Rate (O/N) rising by 6.46% to 32.25%.
Outlook: We anticipate that interbank rates will stay high in the short term.
Treasury Bills
The Treasury bills market was relatively quiet as investors shifted their focus to the NTB auction, where c.₦610 billion was offered across the 91, 182, and 364-day papers. The overall market sentiment was mixed to bearish, with most interest concentrated on the November 6, 2025, bill, which traded in the range of 22.40% to 22.60%. Consequently, the average mid-rate for the benchmark NTB securities increased by 27 bps, closing at 22.85%.
Outlook: We expect the outcome of the NTB auction to influence market activity tomorrow.
FGN Bonds
The local bond market showed slight bearish sentiments, with most activity focusing on the April 2029 and February 2031 bonds. Overall, the average mid-yield increased by 12 bps, settling at 19.31%.
Outlook: We anticipate a mixed trading session tomorrow.
Eurobonds
The Eurobonds market showed stability, with little movement in interest for most African bonds. However, the SSA and North African papers ended lower by the end of the trading session. Consequently, the average mid-yield for Nigerian bonds rose by 4 bps to close at 9.64%.
Outlook: We expect the same sentiment to persist.
Nigerian Equities
The Nigerian stock market maintained its upward trajectory, with the NGX All-Share Index (ASI) and market capitalization increasing by 26 bps to end at 98,227.50 points and ₦59.53 trillion, respectively. This rise was driven by ongoing buying interest in WAPCO and also in ZENITHBANK and DANGSUGAR, despite a selloff in STANBIC. Consequently, the year-to-date return for the ASI rose to 31.37%. Performance across various sectors displayed a noticeable upward trend today, with four of the five major indices finishing positively, led by the Consumer Goods Index. In contrast, the Oil & Gas index experienced a decline.
Outlook: We expect that this sentiment will persist.
Foreign Exchange
The Naira fell by 51 bps against the USD at the NAFEM window, settling at $/₦1,687.52.
Outlook: We expect the Naira to continue trading above the $/₦1,600 level.
Commodities
Oil prices remained largely unchanged as worries about increasing hostilities in the Ukraine conflict potentially affecting oil supplies from Russia countered the reports of rising U.S. crude inventories. Consequently, Brent crude held steady at $73.71 per barrel, while WTI was maintained at c. $69.95. Gold prices rose for the third consecutive day, reaching a one-week high as investors turned to the safe-haven asset in response to growing geopolitical anxieties driven by escalating tensions between Russia and Ukraine. Gold was priced around $2,646.79 per ounce.
Outlook: We expect this sentiment to persist.
