Money Market
System liquidity improved slightly but continued to be negative. As a result, interbank rates remained elevated, with the Overnight Policy Rate (OPR) falling by 22 bps to 31.78% and the Overnight Rate (O/N) decreasing by 21 bps to 32.50%.
Outlook: We anticipate that interbank rates will stay at current levels, pending FAAC credits.
Treasury Bills
The Treasury bills market experienced some activity with a mixed tone. There were strong bullish sentiments for the October and November papers, particularly the 23 October and 20 November 2025 NTBs, while there was a dominance of offers for the February and March 2025 papers. Overall, the average mid-rate for the benchmark NTB papers increased slightly by 2 bps, settling at 22.78%.
Outlook: We expect a mixed to bullish theme tomorrow.
FGN Bonds
The domestic bond market experienced a quiet session, with limited activity noted in April 2029, February 2031, February 2034, and June 2053 securities. Overall, the average mid-yield stayed relatively stable at 19.54%.
Outlook: We expect a mixed session tomorrow.
Eurobonds
The Eurobonds market recovered today as ceasefire discussions between Israel and Hezbollah continued, generating positive sentiment in African sovereign bonds, particularly in Nigeria, Angola, and Egypt. As a result, the average mid-yield for Nigerian bonds fell by 6 bps, settling at 9.55%. In related updates, Core PCE prices in the US rose by 2.8% year-on-year in October 2024, marking a six-month high, while the US economy grew at an annualized rate of 2.8% in Q3 2024, unchanged from earlier projections and down from 3% in Q2.
Outlook: We expect mixed sentiments tomorrow.
Nigerian Equities
The Nigerian stock market experienced mixed sentiments but ultimately ended negatively, with the NGX All-Share Index (ASI) and market capitalization dropping by 34 bps, closing at 97,296.57 points and ₦58.96 trillion, respectively. This decline was mainly due to selling pressure in ARADEL and NB, which outpaced the buying activity in OANDO. Consequently, the year-to-date return for the ASI declined to 30.12%. Overall performance in different sectors was mixed, with the Insurance, Industrial Goods, and Oil & Gas Indices posting gains. At the same time, the Banking and Consumer Goods indices fell into negative territory.
Outlook: We expect the sentiment to remain mixed tomorrow.
Foreign Exchange
At the NAFEM window, the Naira depreciated by 8bps against the USD, closing at ₦1,660.83 per dollar.
Outlook: We expect the Naira to keep trading around the $/₦1,600 region.
Commodities
Oil prices remained stable as markets assessed a ceasefire agreement between Israel and Hezbollah while also looking forward to the upcoming OPEC+ meeting on Sunday, where a potential postponement of a planned oil output increase could occur. Brent crude fell to $72.89 per barrel, while WTI was approximately $68.86. In contrast, gold prices rose slightly from a previous low, buoyed by a weaker dollar, settling around $2,640.87 per ounce despite reduced geopolitical tensions that usually lower gold’s appeal.
Outlook: We expect the Naira to keep trading around the $/₦1,600 region.
