Money Market

System liquidity declined further into negative territory. Nonetheless, the Overnight Policy Rate (OPR) declined by 10bps to 31.93%, while the Overnight Rate (O/N) fell by 12bps to 32.48%.

Outlook: We expect that interbank rates will remain at their current levels.

Treasury Bills

The Treasury bills market experienced a relatively quiet trading session; however, investors are still taking advantage of the liquidity crunch to selectively pursue high-yield offers in mid to long-dated securities. Overall, the average mid-rate for the benchmark NTB papers was 21.96%.

Outlook: We expect the same sentiment to persist tomorrow.

FGN Bonds

The local bonds market continued to see sideways interest across select maturities, specifically for the February 2031, May 2033, February 2034, and June 2053 bonds. Overall, the average mid-yield remained steady at 19.07%.

Outlook: We expect the same sentiment to persist tomorrow.

Eurobonds

The Eurobonds market continued its downtrend today, although there were some buying interests earlier in the day. However, the buying sentiment diminished after the release of US inflation numbers. To elaborate on the inflation data, the annual inflation rate in the US accelerated to 2.6% in October 2024, up from 2.4% in September, the lowest rate since February 2021 and aligned with market expectations. Meanwhile, core inflation remained steady at 3.3%, as anticipated, with monthly core inflation also holding at 0.3%, consistent with September’s figures. Overall, the average mid-yield for Nigerian bonds increased by 4 bps, closing at 9.45%.

Outlook: The focus will now shift to the US PPI data and other Fed-speaking engagements.

Nigerian Equities

The Nigerian stock market rebounded today, with the NGX All-Share Index (ASI) and market capitalization gaining 16 bps. They closed at 97,418.83 points and ₦59.03 trillion, respectively. This positive performance was driven by bargain hunting in major stocks such as UBA, Zenith Bank, Access Bank, and Dangote Sugar. The year-to-date return for the ASI now stands at 30.28%. The Banking Index led the gains in sector performance, followed by the Consumer Goods and Industrial Goods sectors, respectively. However, both the Insurance and Oil & Gas indices experienced declines.

Outlook: We expect a mixed session tomorrow.

Foreign Exchange

The Naira appreciated by 2.63% against the USD at the NAFEM window, settling at $/₦1,645.40.

Outlook: We expect the volatility to persist.

Commodities

Oil prices remained close to their lowest levels in two weeks following OPEC’s revision of its outlook for global oil demand growth in 2024 and 2025, coupled with ongoing concerns over demand in China. Consequently, Brent crude stabilized at $72.24 per barrel, while WTI was around $68.47. Similarly, gold prices rose after falling to their lowest point in almost two months the day before, with gold now trading at approximately $2,596.80 per ounce.

Outlook: We expect this sentiment to persist.