Money Market
System liquidity improved significantly, supported by outstanding FAAC disbursements, remita inflows, and other inflows credited into the market. As a result, the interbank rates eased; specifically, the Overnight Policy Rate (OPR) decreased by 2.07% to 27.18%, and the Overnight Rate (O/N) fell by 2.02% to 27.89%.
Outlook: We anticipate that interbank rates will stay at current levels, barring any significant debit.
Treasury Bills
The Treasury bills market experienced mixed to bullish sentiments, with sideways interest in the long end of the yield curve, particularly in the November 2025 papers. However, trading volumes were thin. Overall, the average mid-rate for the benchmark NTB papers decreased by 6 bps, settling at 22.59%.
Outlook: We expect a mixed to bullish theme tomorrow.
FGN Bonds
The domestic bond market experienced a calm trading session with mixed sentiments across specific bonds, notably those maturing in April 2029, February 2031, May 2033, and February 2034. Despite the varied reactions, the overall average mid-yield saw a slight decline, settling at 19.38%.
Outlook: We expect a mixed session tomorrow.
Eurobonds
The Eurobonds market saw mixed sentiments with limited activity across most African curves. In Nigeria, investors focused on the new Eurobond issuance, where the NIGERIA – $ REG S/144A 6.5YR and 10YR papers were launched, attracting subscriptions exceeding $9 billion. The yields for these papers were 9.625% and 10.375%, respectively. Overall, the average mid-yield for Nigerian bonds fell by 4bps, closing at 9.54%.
Outlook: We anticipate that the newly issued Eurobond papers will generate some activity in the market.
Nigerian Equities
The Nigerian stock market experienced bullish sentiments at the start of the month, with the NGX-ASI and market capitalization increasing by 0.23% to 97,733.86 points and ₦59.24 trillion, respectively. This positive performance was attributable to strong buying interest in top tickers such as WAPCO (following the news of the sale of its majority stake), VFDGROUP, ETERNA, NB, and ACCESSCORP, which contributed to the year-to-date growth of the ASI to 30.71%. All five tracked indices recorded gains, indicating bullish sectoral performance. The Insurance Index posted the highest gain, increasing by 2.14%.
Outlook: We expect the same sentiment to persist tomorrow.
Foreign Exchange
At the NAFEM window, the CBN launched a new trading platform called “BMATCH.” Today, most activity occurred on this platform, and the market had sufficient liquidity to fill some orders. The exchange rate was between $/₦1570.27 and $/₦1693.00, and ultimately the USDNGN remained unchanged at $/₦1,672.69.
Outlook: We anticipate that the Naira will continue to trade around the $/₦1,600 level.
Commodities
Oil prices rose, bolstered by positive factory activity in China, the world’s second largest oil consumer. Tensions in the Middle East also contributed to the increase, as Israel resumed attacks on Lebanon in violation of a ceasefire agreement. Brent crude was priced at $72.55 per barrel, while WTI was at approximately $68.68. In contrast, gold prices declined, ending a four-day winning streak. The decline was attributed to a sharp rally in the US dollar and investors’ anticipation of pivotal economic data and Federal Reserve guidance on interest rates. The price of gold settled at approximately $2,646.50 per ounce.
Outlook: We expect geopolitical and macroeconomic factors to continue to influence market sentiment.
