Daily Financial Markets Update

Commentary

System liquidity declined by 42% to close the week with a surplus of ₦3.84 trillion following the net OMO issuance within the week. The Overnight (O/N) rate declined by 19bps to close the week at 22.16%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market ended the week on a quiet note with a mildly bullish undertone. The 4-Jun-2026 bill led gains, declining sharply by 18bps to 16.11%. The average benchmark rate closed flat at 15.97%.

Commentary

The FGN bond market ended the week on a mixed tone influenced by the CPI print. The short end saw demand, with the 20-Mar-2027 bond declining by 24bps to 17.67%, while slight upticks were recorded on some mid-tenors. Overall, the average benchmark yield fell by 5bps to 15.85%.

Commentary

The SSA Eurobond market traded the week on a bullish note, with yields declining across key sovereigns. The rally was supported by improved risk sentiment following developments in the US–Iran conflict, as Iran confirmed the Strait of Hormuz remains open during the ongoing ceasefire, easing concerns around global oil supply disruptions. Nigeria's yields declined by 14bps to 7.22%, Angola declined by 29bps to 8.29%, while Egypt declined by 9bps to 7.35%.

Commentary

The local bourse closed the week on a positive note, as the NGX All-Share Index (ASI) gained 7.15% to settle at 217,167.57 points, while YTD return came in at 39.56%. Sectoral performance closed the week largely positive, as most key indices recorded gains, reflecting sustained buying interest. The Oil and Gas sector led with a 17.58% gain, driven by a 26.97% rise in ARADEL over the week. Then, followed by the Banking sector, which advanced strongly by 12.55% on the back of a 46.3% increase in ETI. The Consumer Goods sector also posted a 1.65% gain, supported by a 20.14% uptick in UNIONDICONS. Conversely, the Insurance sector declined by 2.64% due to 13.8% loss in INTENEGINS, while the Industrial Goods sector edged lower by 0.03%, weighed down by a 10.00% drop in BERGER. Market breadth stood at 1.59x with 43 gainers and 27 losers. Market capitalization improved to ₦139.826 trillion from ₦131.166 trillion. Trading activity closed the week bullish, with turnover value increased to ₦54.353 billion from ₦31.46 billion while volume traded surged to 1,258 million units from 548.601 million units.

Commentary

The U.S. market is trading on a bullish momentum week on week. The S&P 500 (+4.59%), Nasdaq (+6.15%), Dow Jones (+3.41%), and Russell (+5.70) on optimism over easing Middle East tensions after Iran reopened the Strait of Hormuz, which drove oil prices lower and boosted investor confidence. European markets closed the week in the green, as the STOXX 600 (+1.82%), FTSE 100 (+0.63%), DAX (+3.88%), and CAC 40 (+2.00%) mainly due to falling oil prices after easing Middle East tensions, which improved inflation outlook and boosted travel, banking, and consumer stocks. Asian markets closed the week bullish, with the Shanghai (+1.64%), Hang Seng (+1.03%), and Nikkei (+2.73%) supported by cautious optimism over easing Middle East tensions and expectations of stable monetary policy in China.