Money Market
Opening system liquidity improved significantly, supported by OMO maturities. As a result, the Open Repo Rate (OPR) and the Overnight Rate (O/N) declined by 49bps and 56bps to 31.90% and 32.25%, respectively.
Outlook: We expect the interbank rates to maintain current levels.
Treasury Bills
The treasury bills market saw increased buying interest for specific maturities, especially for the April 2025 and September 2025 papers. However, overall activity was low as investors focused on today’s NTB auction. Overall, the average mid-rate for the benchmark NTB papers dropped by 8 bps to 21.21%.
Outlook: We anticipate the result of today’s auction to impact tomorrow’s activity.
FGN Bonds
The local FGN bonds market traded bearish, with higher offer yields observed across the yield curve. Overall, the average mid-yield rose by 13bps to settle at 18.98%.
Outlook: We expect a mixed to bearish session tomorrow.
Eurobonds
The Eurobonds market showed mixed to bullish activity, with demand seen for Nigeria and long-dated Egypt bonds. There was also continued demand for the ETINL 2029 bonds as investors took advantage of the attractive rates. Overall, the average benchmark yield for Nigerian bonds settled at 9.45%.
Outlook: Activity is expected to remain mixed to bullish.
Nigerian Equities
The Nigerian bourse ended negatively as the NGX-ASI and market capitalization decreased by 0.10% to 97,487.14 points and ₦56.01 trillion, respectively. This was driven by declines in the share prices of OANDO, ETERNA, UBA, ACCESSCORP, FBNH, and UACN. The year-to-date ASI growth fell to 30.38%. Four of the five major sectors closed negatively, with only the Consumer Goods sector showing a gain of 0.31%.
Outlook: We anticipate mixed sentiments tomorrow.
Foreign Exchange
At the NAFEM window, the naira lost 4.06% of its value against the USD, settling at an exchange rate of $1 to ₦1,625.13.
Outlook: We expect the volatility to persist.
Commodities
Oil prices decreased today after a significant drop in the previous session. Brent prices dropped by 0.79% to $76.57, while WTI prices fell by 0.41% to $73.27. Additionally, Gold prices retreated due to the strengthening dollar and reduced expectations for a more significant rate cut in November. The market awaits the Federal Reserve’s September policy meeting minutes for further insights. Gold was down by 0.35% at $2,626.20 per ounce.
Outlook: We expect the sentiment to persist.
