MoneyAfrica| Investment Research
Weekly Market Commentary
November 10, 2025.
Good morning, readers, and welcome to this week’s edition of our stock market newsletter!
As always, our newsletter is divided into two sections: Green White Green, covering the Nigerian stock market, and the Star-Spangled Banner, focusing on the US market.
Green White Green Recap
Macro Update
The $2.35 Billion Eurobond: Nigeria’s Record-Breaking Loan
On November 5, 2025, Nigeria secured $2.35 billion from the international market through a new Eurobond, attracting a record-breaking $13 billion in investor orders (477% oversubscribed). This massive show of faith signals strong investor confidence in Nigeria’s economic reforms. The inflow immediately boosts the CBN’s dollar reserves, helping to stabilise the naira (N) and counter inflationary pressures. Strategically, the proceeds are used to pay off an older $1.1 billion Eurobond due this month, managing debt effectively, and funding the rest of the 2025 fiscal deficit.
The funds were split into two long-term tranches, confirming a commitment to reducing short-term refinancing risk:
10-Year Bond ($1.25 Billion): Matures in 2036 with a fixed interest rate (coupon) of 8.6308%.
20-Year Bond ($1.10 Billion): Matures in 2046 with a fixed interest rate of 9.1297%.
Despite the high yields (8–9%), the overwhelming demand allowed Nigeria to price the bonds slightly better than expected. This successful issuance strengthens the country’s global reputation, helps benchmark future Nigerian corporate bonds, and ensures transparency as the notes will be listed on the London Stock Exchange, FMDQ, and NGX.
Key Takeaway:
- The $13 billion in orders confirms global trust in Nigeria’s future. The short-term goal of boosting reserves and managing debt has been achieved. The long-term challenge is using this breathing room to drive sustainable growth, ensuring that the country’s rising debt service costs (due to the high 8–9% yields) can be comfortably repaid over the next two decades.
FX Update
Naira Holds Firm Amid Sustained FX Inflows and Rising Reserves
The naira held steady this week, supported by continued foreign exchange inflows and a slight increase in external reserves.
At the official Nigerian Foreign Exchange Market (NFEM), the naira appreciated to ₦1,436.57/$, up from ₦1,422/$ the previous week. The parallel market also remained stable, with the naira trading around ₦1,455/$, compared to ₦1,465/$ a week earlier.
Nigeria’s external reserves increased marginally to $43.32 billion as of November 6, from $43.17 billion at the end of October. The modest rise comes at a time when the country successfully raised $2.35 billion through a Eurobond issuance that attracted a record $13 billion in investor demand.
These Eurobond proceeds are expected to provide additional support to the reserves once fully reflected, strengthening Nigeria’s FX buffers in the near term.
Key Takeaway:
- The naira’s stability, alongside rising reserves and anticipated Eurobond inflows, suggests improving short-term FX conditions. .
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Equities Update
NGX Slides 2.99% as Profit-Taking Hits Major Sectors
The Nigerian stock market closed the week lower as the All-Share Index (ASI) fell by 2.99%, bringing the year-to-date gain to 45.27%. The decline was driven mainly by broad profit-taking across several key sectors.
The Banking sector dropped by 3.85% this week, while the Insurance sector recorded an even larger weekly loss of 7.56%, showing that investors were more cautious toward financial stocks.
The Consumer Goods sector also slipped by 2.54% this week, although it still remains one of the strongest performers this year.
The Oil and Gas sector fell by 4.80% this week, reflecting weaker sentiment in the energy space.
Meanwhile, the Industrial Goods sector declined by 1.09% this week, as investors continued to take profits after earlier gains.
Key Takeaway:
- The market declined mainly because most major sectors recorded losses this week.
- Despite the pullback, overall market performance for the year remains strong.
Fixed Income Update
Investors Demand Higher Returns as T-Bill Yields Climb
In the domestic market, Treasury bill yields trended upward, reflecting tighter liquidity and sustained investor demand for higher returns. As of November 7, the 91-day bill declined slightly to 16.23% (from 16.79%), the 180-day bill eased marginally to 17.23% (from 17.37%), while the 365-day bill inched up to 18.59% (from 18.56%). Meanwhile, the average bond yield closed the week at 15.56%, as investors maintained a cautious stance ahead of further policy guidance from the CBN.
Key Takeaway:
- Short-term instruments continue to offer attractive returns for investors who may need quick access to their money.
You can invest in treasury bills to save for your short-term goal on rent, schools, fees, etc. through Ladda—a fintech app that helps you save at high returns.
For long-term goals, naira-denominated fixed income instruments are not suitable due to inflation and currency risks
Star-Spangled Banner Recap
Global Markets Decline as Investors Turn Cautious
Global markets weakened this week as the ongoing US government shutdown created uncertainty for investors. With many federal agencies closed and 1.4 million workers either furloughed or working without pay, several key economic reports including employment and jobs data were delayed. This has left markets operating without full visibility into the health of the US economy. Early private-sector estimates point to softness in hiring, reinforcing concerns about a slowing labour market.
The shutdown has also begun affecting the aviation sector, with airlines warning of potential flight delays and cancellations as federal aviation staff shortages worsen.
At the same time, the US Federal Reserve’s recent 0.25% rate cut did little to lift sentiment (lowering rates to the 3.75%–4.00% range, the lowest in three years). Investors are increasingly unsure whether monetary easing can counterbalance the drag from the shutdown and broader global growth worries.
Against this backdrop, global equities retreated. The MSCI World Index fell 1.78% for the week. In the US, the Dow Jones declined 1.21%, the S&P 500 lost 1.63%, and the Nasdaq dropped 3.04% as technology stocks saw heavy selling.
In Europe, France’s CAC 40 slipped 1.97%, while the UK’s FTSE 100 edged down 0.36% amid weak earnings updates. Across Asia, Japan’s Nikkei 225 tumbled 4.07%, pressured by a stronger yen and risk-off sentiment.
Despite the week’s decline, longer-term performance remains solid: the MSCI World Index is up 16.59% YTD, the S&P 500 has risen 14.40%, and the Nasdaq is ahead 19.13%, underscoring broad resilience in global stocks this year.
Key Takeaways:
- Markets are turning cautious as the US shutdown delays crucial economic data and early estimates point to weaker job growth.
- Investors will focus on the next available US inflation and employment updates (whenever they are released) for clues on whether more Fed easing is likely before year-end.
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We hope you find this edition insightful, and as always, stay focused on your financial goals!