Money Market
System liquidity continued to be negative but experienced some relief as statutory revenue inflows helped alleviate the illiquidity. However, interbank rates stayed high due to the FGN bond auction settlement of c.₦211 billion, FX intervention settlement, and CRR activities. Specifically, the Overnight Policy Rate (OPR) and the Overnight Rate (O/N) were recorded at 32.13% and 32.67%, respectively.
Outlook: We anticipate that interbank rates will stay elevated in the near term.
Treasury Bills
The Treasury Bills market experienced a subdued atmosphere, with some activity noted at the long end of the curve, particularly for the December bills. There were a few selling interests as market participants looked to liquidate holdings to meet their obligations amid low system liquidity. Notably, trades occurred for the December 9, 2025 bill, with execution rates around low 23.00% levels. Overall, the average mid-rate for benchmark NTB papers settled at 23.33%.
Outlook: We expect the market to trade mixed sentiments tomorrow.
FGN Bonds
The local bonds market experienced a quiet day, with little activity observed in the mid-and long-dated papers, specifically the February 2031 and June 2053 bonds. However, trading volumes were sparse overall. By the end of the day, the average mid-yield increased by 2 bps, closing at 19.53%.
Outlook: We expect the same sentiment to persist tomorrow.
Eurobonds
The Eurobonds market experienced sideways interest today, although trading volumes were low. Oil-exporting countries like Angola and Nigeria saw gains due to rising oil prices, which boosted positive sentiment toward their Eurobonds. Also, investors are gearing up for potential hawkish hints from the FOMC ahead of the Fed’s decision today. While a 25bps rate cut is expected, attention is on the Summary of Economic Projections for insights on inflation risks and the labor market. The average mid-yield for Nigerian bonds stood at 9.38%.
Outlook: We expect participants to remain cautious as they reflect on the decisions made at today’s FOMC meeting.
Nigerian Equities
The Nigerian stock market closed today positively, with the NGX-ASI rising by 43 bps to close at 100,477.46 points and market capitalization increasing to ₦60.91 trillion. Gains in stocks such as MRS, ARADEL, OANDO, ZENITHBANK, and ACCESSCORP fueled this growth. Year-to-date, the ASI has grown by 34.38%. Overall, four of the five tracked indices recorded gains, with the Insurance Index leading at 3.16%.
Outlook: We expect the same sentiment to persist tomorrow.
Foreign Exchange
The Nigerian Foreign Exchange Market (NFEM) was active today, with improved liquidity observed. Transactions occurred within $/₦1,531.00 and $/₦1,565.00. Overall, the naira depreciated by 32 bps, closing at $/₦1,545.00.
Outlook: We expect the Naira to continue trading within a similar range.
Commodities
Oil prices increased slightly as investors remained cautious ahead of a possible interest rate cut by the U.S. Federal Reserve, with a decrease in U.S. crude inventories providing additional support. Brent crude was around $73.99 per barrel, and WTI was about $71.12. On the other hand, gold prices dipped as the dollar stayed strong, with investors anticipating a pivotal U.S. Federal Reserve decision that could influence market sentiment. Gold traded near $2,637.13 per ounce.
Outlook: We expect geopolitical and macroeconomic factors to continue to affect market sentiment.
