Money Market

System liquidity worsened due to some CRR debits, causing interbank rates to trend upward. Specifically, the Overnight Policy Rate (OPR) increased by 1.60% to 32.03%, while the Overnight Rate (O/N) rose by 1.55% to 32.60%.

Outlook: We anticipate that interbank rates will continue to trade at these current levels.

Treasury Bills

The Treasury bills market remained stable, with limited trades occurring in select maturities, especially in the mid and long-dated securities. Overall, the average mid-rate for the benchmark NTB papers was 21.95%.

Outlook: We expect the same sentiment to persist tomorrow.

FGN Bonds

The local bonds market experienced slight interest in the February 2031 paper; however, overall activity remained low as investors awaited the FGN bonds primary market auction circular. As a result, the average mid-yield stayed relatively stable at 19.07%.

Outlook: We expect a mixed theme tomorrow.

Eurobonds

The Eurobonds market experienced a downward trend following the US holiday as investors reevaluated the current investment landscape. Key factors influencing this reassessment include the trajectory of interest rates after Trump’s electoral victory, the overall state of the US economy, and the recently released OPEC monthly report. African Eurobonds showed weak sentiment, with selling pressure observed across all issues. As a result, the average mid-yield for Nigerian bonds rose by 17 bps, closing at 9.41%.

Outlook: Market focus will now turn to tomorrow’s US Consumer Price Index (CPI) data release.

Nigerian Equities

The Nigerian stock market declined today, with the NGX-ASI and market capitalization falling by 12 bps to close at 97,260.75 points and ₦58.93 trillion. This drop was driven by selling pressure on stocks like OANDO, DANGSUGAR, UCAP, and NESTLE, despite some buying interest in TRANSCORP. The year-to-date return for the ASI is now at 30.07%. Among sectors, three out of five major indices showed gains, most notably in Banking.

Outlook: We expect a mixed session tomorrow.

Foreign Exchange

The Naira’s value declined by 50 bps against the USD at the NAFEM window, closing at $/₦1,689.88.

Outlook: We expect the volatility to persist.

Commodities

Oil prices stabilized after experiencing a 5% decline over the last two sessions, as investors digested OPEC’s recent cut in oil demand forecasts and expressed disappointment with China’s latest stimulus measures. As a result, Brent crude steadied at $72.13 per barrel, while WTI traded around $68.36. Meanwhile, gold prices fell to a nearly two-month low due to a stronger U.S. dollar and optimism about economic growth following Trump’s victory. Gold traded around $2,607.10 per ounce.

Outlook: We expect this sentiment to persist.