Daily Financial Markets Update

Commentary

System liquidity opened with a surplus of ₦6.61 trillion. The Overnight (O/N) rate declined by 11bps to close at 22.13%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market traded on a quiet note today, with activity largely subdued across the curve. The 22-Apr-2027 bill was the sole mover, easing marginally by 2bps to 15.93%, while the remaining bills held steady. The average benchmark rate closed flat at 16.04%.

Commentary

The FGN bond market traded on a slightly bearish note today, with selling pressure emerging at the mid-curve. The 25-Jun-2032 and 29-Jan-2035 bonds led the move, rising by 25bps and 22bps to 16.94% and 16.81% respectively, while the rest of the curve remained largely unchanged. The average benchmark yield rose by 1bp, closing at 16.09%.

Commentary

The SSA Eurobond market traded on a bullish note today, as investors responded positively to signs of a potential Iran truce, even as the U.S. moved to force open the Strait of Hormuz and the UAE came under attack, testing the fragility of the ceasefire. Despite the lingering tension, risk sentiment remained broadly supportive. Nigeria yields declined by 2bps to 7.05%, Angola tightened by 9bps to 7.68%, while Egypt eased by 9bps to 7.37%.

Commentary

The local bourse closed the day on a negative note, as the NGX All-Share Index (ASI) declined slightly by 0.54% to close at 241,849.2 points for the day, pulling the year-to-date return to 55.42%. Sectoral performance closed the day mixed but on a broadly bearish note, as losses in select sectors were only partially tempered by gains elsewhere, reflecting a cautious market tone. The Banking sector declined slightly by 1.22%, led by an 8.72% sell-off in WEMA. Similarly, Consumer Goods edged lower by 1.05%, dragged down by a 10.00% drop in GUINNESS, while the Oil and Gas sector slipped by 2.91% due to pressure from a 5.81% sell-off in ARADEL. On the positive side, Industrial Goods posted a modest gain of 2.49%, supported by strong buying interest of 9.99% in CAP for the second consecutive day. The Insurance sector also closed higher, up 0.94%, driven by a robust 9.96% rally in CONHALL. Market breadth stood at 1.73x with 45 gainers and 26 losers. Market capitalization declined slightly to ₦155.152 trillion from ₦156.058 trillion. Trading activity closed the day bullish, with turnover value increased to ₦75.225 billion from ₦43.84 billion while volume traded increased to 1,268.25 million units from 967.47 million units.

Commentary

U.S. stocks are rising as the S&P 500 (+0.77%), Dow Jones (+0.52%), Nasdaq (+0.96%), and Russell (+1.52%) on falling oil prices and resilient corporate earnings despite ongoing Middle East tensions. European markets close mixed. CAC (+1.08%), STOXX (+0.68%), and DAX (+1.67%) on strong earnings and easing energy prices, while the FTSE (-1.40%) declined on weakness in HSBC Holdings. Asian markets closed mixed, Nikkei (+0.38%) on tech strength, Hang Seng (-0.76%) on geopolitical tensions, and Shanghai (+0.11%) on strong PMI data and tech gains.