Money Market

System liquidity improved as additional FAAC inflows were credited to the system. However, the system remained in a deficit. As a result, interbank rates remained elevated, with the Overnight Policy Rate (OPR) recorded at 32.29% and the Overnight Rate (O/N) at 32.79%.

Outlook: We expect interbank rates to remain high, pending further FAAC inflows.

Treasury Bills

The Treasury Bills market saw a bearish theme in the mid-to-long end of the yield curve. Offers were primarily observed for the May, October, November, and December 2025 securities, with very little demand to match. However, a few trades were executed as some traders aimed for attractive pricing levels. Overall, the average mid-rate for benchmark NTB papers ended at 23.25%.

Outlook: We expect the market to trade mixed sentiments tomorrow.

FGN Bonds

The local bonds market experienced a quiet session due to a lack of strong investor demand. Some activity was noted in the mid-to-long-term bonds, especially in the Feb 31s, Feb 34s, and Jun 53s. Overall, the average mid-yield settled at 19.52%.

Outlook: We expect the same sentiment to persist tomorrow.

Eurobonds

The Eurobond markets in Nigeria, Angola, and Egypt experienced notable declines as investors adopted a risk-off approach due to global economic uncertainties and reduced demand for high-yield assets. This shift in risk appetite is attributed to concerns over slowing growth, geopolitical tensions, and tighter financial conditions. Meanwhile, U.S. Treasury yields reached a seven-month high after the Fed’s unexpected hawkish stance, reducing their 2025 rate cut projections from four to two. Overall, the average mid-yield for Nigerian bonds increased by 7 bps to close at 9.45%.

Outlook: We anticipate mixed market sentiments as investors seek new trading levels in frontier markets.

Nigerian Equities

The Nigerian stock market ended today’s trading session positively, with the NGX-ASI and market capitalization rising by 77 bps to close at 101,248.02 points and ₦61.37 trillion, respectively. This gain was driven by increases in the share prices of HONYFLOUR, UACN, ARADEL, NB, NESTLE, TRANSCOHOT, and FBNH, which countered losses in BUACEMENT. The year-to-date growth of the ASI now stands at 35.41%. Most sectors performed well, with four out of five indices in the green. The Insurance Index led with a 3.79% rise, while the Industrial Goods Index fell by 0.63%.

Outlook: We expect the same sentiment to persist tomorrow.

Foreign Exchange

The Nigerian Foreign Exchange Market (NFEM) experienced a degree of stability today, with enhanced liquidity noted. Trades were conducted from $/₦1,531.00 to $/₦1,550.00. Overall, the Naira appreciated by 32 bps, closing at $/₦1,540.00.

Outlook: We expect the Naira to continue trading within a similar range.

Commodities

Oil prices experienced a slight increase, buoyed by a decrease in U.S. crude inventories. However, gains were capped as the U.S. Federal Reserve indicated a slowdown in interest rate cuts for 2025, which might constrain economic growth, lower fuel demand, and bolster the dollar. Brent crude was priced at about $73.67 per barrel, while WTI was around $71.09. Meanwhile, gold prices remained stable, with earlier gains wiped out as U.S. data hinted at the Fed’s cautious policy stance ahead, trading near $2,589.43 per ounce.

Outlook: We expect geopolitical and macroeconomic factors to continue to affect market sentiment.