Money Market

System liquidity fell deeper into negative territory. Consequently, interbank rates stayed high, with the Overnight Policy Rate (OPR) settling at 32.00%, while the Overnight Rate (O/N) rose by 15 bps to 32.71%.

Outlook: We anticipate that short-term interbank rates will stay high while we wait for FAAC credits.

Treasury Bills

The Treasury bills market experienced a quiet theme as players remained cautious while awaiting the MPC’s decision at today’s meeting. Consequently, the average mid-rate for the benchmark NTB papers stayed unchanged at 22.76%.

Outlook: Following the 25-bps hike in the benchmark interest rate to 27.50%, we anticipate mixed activity tomorrow.

FGN Bonds

Due to the MPC meeting, the local FGN bond market experienced a calm session with weak interest in mid-dated papers. Overall, the average mid-yield increased by 5 bps to 19.54%.

Outlook: We expect a mixed session tomorrow.

Eurobonds

The Eurobonds market faced a setback today due to geopolitical factors, proposed tariffs by the President-elect of the United States, and ongoing production discussions by OPEC+. Nigeria and Angola, referred to as the Oilers, experienced the most significant price decline, with Angola dropping as much as $1.15. Consequently, the average mid-yield for Nigerian bonds rose by 11 bps, closing at 9.60%.

Outlook: We expect mixed sentiments tomorrow.

Nigerian Equities

The Nigerian stock market saw a slight recovery today, with the NGX All-Share Index (ASI) and market capitalization increasing modestly by 1 bp, closing at 97,639.88 points and ₦59.17 trillion, respectively. This increase was driven by renewed investor interest in WAPCO, which counterbalanced the selloffs in MTNN, OANDO, UBA, and ACCESSCORP. As a result, the year-to-date return for the ASI rose to 30.58%. Performance across different sectors was generally positive, with four out of the five major indices showing gains, while only the Banking index experienced a downturn.

Outlook: We expect a mixed theme tomorrow.

Foreign Exchange

At the NAFEM window, dollar liquidity improved, leading to a 97-bp appreciation of the naira against the USD. The exchange rate fluctuated between $/₦1,661 and $/₦1,705.00, ultimately closing at $/₦1,659.44.

Outlook: We anticipate that the Naira will keep trading within the current range.

Commodities

Oil prices declined as traders monitored OPEC+ talks regarding production and speculated on the effects of President-elect Donald Trump’s proposed trade tariffs on Mexico and Canada. Brent crude dropped to $72.28 per barrel, and WTI was around $68.23. Meanwhile, gold prices fell to a week’s low, influenced by easing safe-haven demand amid hopes for an Israel-Hezbollah ceasefire, settling at approximately $2,626.82 per ounce.