Money Market
Interbank liquidity fell deeper into negative territory, even with the infusion of ₦285.37 billion from treasury bills redemption. As a result, interbank rates saw a significant increase. The Overnight Policy Rate (OPR) rose by 79 bps to reach 32.29%, and the Overnight Rate (O/N) also climbed by 65 bps, closing at 32.65%.
Outlook: Interbank rates are likely to stay stable at their current levels, unless there are major shifts in the liquidity situation within the market.
Treasury Bills
The Treasury Bills market exhibited significant activity today, primarily driven by post-auction dynamics. A prevailing bullish sentiment was noted as participants who were unsuccessful in the auction turned to the secondary market to satisfy their demand. Additionally, some market players seized the opportunity to take profits amid the rally. Moderate demand was observed for the January 2026 bills, as buyers selectively positioned themselves at favorable levels. Overall, trading activity remained robust, with the newly issued 1-year bill receiving the most attention. Consequently, the average mid-rate for benchmark NTBs decreased by 19 bps, settling at 21.76%.
Outlook: We expect mixed to bullish sentiments to persist in tomorrow’s session.
FGN Bonds
The local bonds market saw increased activity today following a robust session the previous day, as market participants directed their attention towards the newly issued one-year bill. Additionally, there was notable demand for bonds maturing in April 2029, February 2031, May 2033, February 2034, and January 2035. As a result, the overall average mid-yield decreased by 31 bps, concluding at 19.85%.
Outlook: We expect the buying sentiment to persist, as investors continue to actively pursue high-yielding securities.
Eurobonds
The Eurobond market experienced mixed sentiments today. Early indications of mild buying interest in the Sub-Saharan Africa (SSA) region and selected North African bonds shifted to a bearish tone by the close of the session, prompted by profit-taking and remarks from various Federal Reserve officials. Consequently, the average mid-yield for Nigerian bonds rose by 3 bps to reach 9.20%.
Outlook: We expect some mixed sentiments in tomorrow’s session.
Nigerian Equities
The Nigerian equities market extended its positive momentum as the ASI gained 10bps, driven by bargain hunting in TRANSCORP and ETI, bringing YTD returns to 2.43%. Market breadth remained strong, with 33 stocks advancing against 23 decliners. ETERNA (+9.88%) led the gainers, while TRIPPLEG (-9.72%) topped the losers. The NGX Banking Index edged up 9bps, driven by ETI (+2.96%) and FIDELITYBK (+1.02%), while FCMB (-3.33%) and ACCESSCORP (-0.72%) dragged. The Consumer Index gained 18bps on CADBURY (+9.88%) and VITAFOAM (+6.18%), while DANGSUGAR (-1.35%) weighed it down. Trading activity eased, with value traded down 20.09% to $15.29m. Major crosses included 6m GEREGU at N1,035.00 and 32.27m ACCESSCORP at N27.35. Mixed sentiments persisted, with TRANSCORP (+1.13%) and ETI (+2.96%) supporting gains.
Outlook: We expect the same sentiment to persist in tomorrow’s session.
Foreign Exchange
The Nigerian Foreign Exchange Market (NFEM) maintained a strong demand for foreign currency, with most transactions taking place between $/₦1,450.00 and $/₦1,520.00.
Outlook: With foreign inflows continuing to be robust, the Naira’s outlook appears set for enhanced stability.
Commodities
Oil prices declined after President Trump reaffirmed his intention to increase U.S. oil production, unsettling traders following a significant rise in crude stockpiles. Brent crude fell 32 cents to $74.29 a barrel, while U.S. West Texas Intermediate dropped 42 cents to $70.61. Gold prices also decreased by 1% as the stronger U.S. dollar and profit-taking following recent record highs influenced the market. Spot gold was down 0.4% to $2,853.16 per ounce, while futures settled 0.6% lower at $2,876.70.
Outlook: In the short term, oil markets are likely to experience volatility due to the impact of Trump’s unpredictable decisions regarding tariffs and sanctions on global trade.
