Daily Financial Markets Update

Commentary

System liquidity opened the week with a surplus of ₦5.56 trillion. The Overnight (O/N) rate declined by 6bps to close at 22.24%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The Nigerian Treasury bills market commenced the week on a subdued footing, reflecting a bearish bias as investors repositioned ahead of the CBN's OMO auction. The CBN offered ₦600bn across two maturities, selling ₦1.6tn against total subscriptions of ₦1.7tn. Benchmark rate edged higher, with the average rate climbing 2bps to close at 16.04%, signalling cautious sentiment amid liquidity adjustments.

Commentary

The FGN bond market opened the week on a slightly bullish note, with demand filtering into the mid-curve. The 29-Jan-2035 and 25-Jun-2032 bonds led gains, declining by 20bps and 16bps to 16.59% and 16.69% respectively, while the 17-Apr-2029 and 21-Feb-2031 bonds also eased by 12bps and 9bps. The average benchmark yield declined by 1bp, closing at 16.08%.

Commentary

The SSA Eurobond market opened the week on a bullish note, amid conflicting reports from Iran and the U.S about American warship in the strait of Hormuz. Nigeria led gains, with yields declining by 11bps to 7.02%, while Angola tightened by 8bps to 7.79% and Egypt eased by 5bps to 7.50%.

Commentary

The local bourse opened the week on a positive note, as the NGX All-Share Index (ASI) gained 0.36% to close at 243,159.0 points for the day, pushing the year-to-date return to 56.26%. Sectoral performance opened the week on a mixed but broadly stable note, as gains in select sectors were tempered by notable pullbacks in others, reflecting a more cautious market tone. The Consumer Goods edged lower by 0.08%, dragged down by weakness of 6.78% in share price of CARDBURY. The Oil and Gas sector slipped marginally by 0.89%, pressured by a decline of 5.11% in OANDO. On the positive side, the Banking sector recorded a slight gain of 0.41%, led by buying interest of 9.7% in STANBIC. The Industrial Goods posted a modest gain of 1.08%, supported by a strong buying interest of 9.99% in CAP. The Insurance sector also closed higher, up by 1.25%, driven by a strong rally of 10% in CONHALL. Market breadth stood at 1.26x with 43 gainers and 34 losers. Market capitalization improved slightly to ₦156.058 trillion from ₦155.994 trillion. Trading activity opened the week bearish, with turnover value decreased to ₦43.84 billion from ₦104.29 billion while volume traded decreased to 967.47 million units from 1,871.37 million units.

Commentary

The U.S. market is trading bearish. The S&P (-0.37%), Russell (-0.51%), Nasdaq (-0.33%), and Dow Jones (-0.83%) amid heightened U.S.–Iran tensions and rising oil prices, which dampened investor sentiment. European markets opened the week bearish, with CAC (-1.71%), STOXX (-1.0%), DAX (-1.06%), and FTSE (-0.14%) pressured by U.S. tariff threats on EU autos, Middle East tensions, and weakness in energy and banking stocks. Asian markets opened the week bullish, HangSeng (+1.24%) on easing geopolitical tensions, Nikkei (+0.38%) on tech strength, and Shanghai (+0.11%) on strong PMI data and tech-led optimism.