Money Markets
System liquidity started off negative after the OMO auction settlement and net CRR debit activities from yesterday. As a result, interbank rates increased, with the Overnight Policy Rate (OPR) and Overnight Rate (O/N) trading between 28% and 30%.
Outlook: We expect interbank rates to continue to trade around the same levels.
Treasury Bills
The Treasury Bills market experienced a calm atmosphere, as most participants were focused on housekeeping activities. However, there was some interest in the 25-Dec-2025 paper, and a few offers were available to meet this demand. As a result, the average mid-rate for the benchmark NTB papers closed at 23.12%.
Outlook: We anticipate a calm start to the year as participants reassess the current yield environment.
FGN Bonds
The local bonds market experienced another quiet session, with most interest directed toward the February 2031, May 2033, February 2034, and June 2053 papers. Overall, the average mid-yield settled at 19.59%.
Outlook: We expect a calm start to the year as participants reevaluate the current yield environment.
Eurobonds
The Eurobond market had a quiet trading session, but there was a slightly bullish tone. A noticeable amount of bids was observed for sovereign bonds, especially from Nigeria, Angola, and Egypt. Overall, the average mid-yield for Nigerian bonds remained stable at 9.54%.
Outlook: We expect a calm beginning to the year as participants reevaluate the current yield environment and key economic indicators.
Nigerian Equities
The Nigerian stock market ended the year on a downturn, with the NGX-ASI dropping by 22 bps to close at 102,926.40 points, and the market capitalization reaching ₦62.76 trillion. This decline was primarily caused by profit-taking in MTNN, which overshadowed the limit-up finishes seen in OKOMUOIL and UNILEVER. The year-to-date performance of the ASI currently stands at 37.65%. Out of the five major indices, three posted positive results, with the Insurance Index leading the way with a gain of 4.93%, while the Banking and Consumer Goods indices saw declines.
Outlook: We anticipate a modest recovery at the beginning of the new year, though with a degree of caution as investors monitor important economic signals and possible market drivers.
Foreign Exchange
The NFEM demonstrated stability today with improved liquidity. Transactions occurred within the range of $/₦1,520.00 and $/₦1,550.00. Overall, the Naira appreciated by 13 bps, closing at $/₦1,535.00.
Outlook: We expect the Naira to continue trading within a similar range.
Commodities
Oil prices were expected to end 2024 with a second straight year of declines, but remained steady for the day as data revealed growth in Chinese manufacturing was offset by Nigeria’s plan to boost production next year. Brent crude was valued at $73.92 per barrel, while WTI stood at about $70.95. Meanwhile, Gold prices were set for an annual rise of over 26%, their largest yearly increase since 2010, driven by a demand for safe-haven assets and cuts in central bank interest rates, although the sentiment could become more cautious depending on potential policy changes under a second Trump presidency. It traded around $2,612.04 per ounce.
Outlook: We expect geopolitical and macroeconomic factors to continue to affect market sentiment.
