Welcome to our weekly Market watch, where we break down the most important financial and economic updates from around the world and right here at home.
Global Economy
US: Markets React to Midterm Elections and Fed Policy
Major U.S. stock indexes finished the week lower following a volatile period of trading. Investors spent the days evaluating the outcomes of the midterm elections, which shifted the balance in Congress, alongside ongoing economic reports on job growth and manufacturing.
Technology shares experienced the steepest declines due to concerns over artificial intelligence spending and semiconductor outlooks. Meanwhile, the U.S. Federal Reserve decided to keep its benchmark interest rate unchanged between 3.75% and 4.00%, supported by steady job creation and expanding manufacturing activity.
Europe: Markets Show Relative Stability
European stocks generally outperformed U.S. markets during the week, with the pan-European STOXX Europe 600 Index gaining 0.24%. Among major regional indexes, France’s CAC 40 rose 2.13% and Italy’s FTSE MIB increased 1.12%, while Germany’s DAX remained flat and the UK’s FTSE 100 dipped 0.52%.
While technology stocks faced mild pressure globally, European markets remained relatively insulated due to lower exposure to artificial intelligence companies. At the same time, Eurozone inflation accelerated to 4.0% in October, and the Bank of England raised its interest rate by 25 percentage points divided into smaller increments to 4.0% to combat persistent price pressures.
Sub-Saharan African Economies
The African Eurobond market saw mixed reactions from investors last week. Nigerian bonds saw a small rise in returns, which means investor interest was calmer and less enthusiastic. On the other hand, Kenyan and South African bonds saw their returns rise further. Senegal experienced mixed movements, with its longer-term returns easing downward.
Egypt: State Stake Sale Advances Economic Reforms
Egypt raised approximately $658 million by selling a 45% stake in the state-owned Banque du Caire. This transaction advances the country’s privatization program, which is designed to widen private sector participation, attract investment, and reduce the government’s footprint in the economy in line with international reform targets.
Ghana: Inflation Rises to an Eleven-Month High
The annual inflation in Ghana increased to 5.5% in October from 5.2% in September, marking its third consecutive monthly rise. This upward pressure was driven by non-food inflation, which climbed to 7.9%, and services inflation, which reached 11.5%, while food inflation eased to 2.8%. With the central bank policy rate sitting at 14%, these figures suggest policymakers may choose to keep interest rates steady at their upcoming meeting.
Senegal: Parliament Rejects Government Budget Bill
Senegal’s parliament rejected the government’s amended 2026 budget by a vote of 109 to 20. This decision extends ongoing political disputes over fiscal strategy as Dakar works to secure a new financing arrangement with international monetary authorities.
Major Updates During the Week
Before looking at the trading floors, here is a quick look at where our core economic indicators stand:
1. NNPC Proposes Public Share Offering
The Nigerian National Petroleum Company outlined plans to sell between 5% and 10% of its equity to domestic investors through a public share offering, with a potential secondary listing in London or New York.
While preparations are expected to take through the end of 2027, making the offering non-immediate, the primary goal is to improve corporate transparency and governance.
2. Naira Experiences Minor Adjustment in Official Market
The Naira depreciated marginally by 0.04% in the official foreign exchange market, moving from ₦1,346.26 per dollar to ₦1,346.80 per dollar over the course of the week.
Equity Market: Market Pulls Back as Industrial and Energy Shares Decline
The Nigerian stock market erased previous gains, with the main market index falling 2.13% to finish at 248,877.22 points. This downward movement was largely driven by losses in the Industrial Goods sector, which dropped 4.35%, and the Oil and Gas sector, which fell 3.72%.
Total market capitalisation decreased to ₦161.59 trillion, reducing the year-to-date return to 59.93% from 63.42%. Market breadth was negative, with 57 stocks declining against 29 gainers. Financial services dominated activity, accounting for 70% of total trading volume, with Honeywell Flour, Transcorp, and E-Transact leading the top gainers.
Fixed Income Market: Treasury Bill Demand Surges at Auction
In the local fixed-income market, trading was mixed as the average return on Treasury bills dipped slightly to 17.88% and average bond returns fell to 16.34%. At the primary Treasury bill auction, investor demand surged with total subscriptions reaching ₦2.05 trillion compared to ₦1.91 trillion previously, heavily concentrated in the one-year bill.
Total allotments rose significantly to ₦509.4 billion from ₦71.2 billion as investors locked in available returns. In the secondary bond market, medium and long-term returns trended downward, while short-term returns saw a minor increase.
What This Means for Your Money
Last week brought important shifts, from political changes affecting global markets to major companies like NNPC planning future public share offerings at home. Seeing massive demand at government Treasury bill auctions shows that investors are eager to lock in strong, secure returns on their cash. At the same time, the recent pullback in the stock market serves as a reminder that prices move in cycles, making a diversified approach essential.
As an investor, use these moments wisely. When stock markets pull back in certain sectors, look for fundamentally strong companies with reliable track records rather than rushing after short-term noise. Meanwhile, with government auctions offering high subscription levels and attractive yields, short-term fixed-income options remain a reliable tool to protect and grow your capital safely. Stay focused on your long-term goals and let a balanced strategy guide your wealth journey.
