Daily Financial Markets Update

Commentary

System liquidity opened with a surplus of ₦6.62 trillion. The Overnight (O/N) rate rose by 5bps to close at 22.17%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market traded on a quiet note today, ahead of the NTB auction. The DMO offered ₦550bn on the 364-day bill, attracting a subscription of ₦2.23trn with a bid-cover ratio of 3.38x, and allotted ₦660.49bn at a stop rate of 16.15%, tighter than the previous auction's 16.199%. The secondary market average benchmark rate closed flat at 16.04%.

Commentary

The FGN bond market traded on a quiet note today, with mixed but largely muted price action across the curve. The 25-Jun-2032 and 29-Jan-2035 bonds eased by 19bps and 11bps to 16.75% and 16.70% respectively, while the 27-Aug-2030 bond bucked the trend, rising by 14bps to 16.55%. The average benchmark yield closed flat at 16.09%.

Commentary

The SSA Eurobond market traded firmly higher today, buoyed by renewed optimism around geopolitical developments. Iran signalled it is reviewing a fresh U.S. proposal, with sources suggesting the two sides are edging closer to a potential agreement. The prospect of easing tensions weighed heavily on energy markets, driving Brent crude down nearly 7% to $102 per barrel. Consequently, Nigeria yields declined by 8bps to 6.98%, Angola tightened by 8bps to 7.59%, while Egypt eased by 33bps to 7.04%.

Commentary

The local bourse closed the day on a positive note, as the NGX All-Share Index (ASI) gained slightly by 0.36% to close at 242,729.5 points for the day, pushing the year-to-date return to 55.98%. Sectoral performance closed the day on a mixed note but largely bullish, reflecting a cautious market tone. Consumer Goods edged lower by 0.52%, dragged down by a 9.99% drop in GUINNESS, while the Oil and Gas sector slipped by 0.01% due to pressure from a 0.93% sell-off in JAPAULGOLD. On the positive side, the Banking sector gained slightly by 0.51%, led by a 5.44% buying interest in WEMA. Industrial Goods posted a modest gain of 0.62%, supported by strong buying interest of 9.99% in CAP for the third consecutive day. The Insurance sector also closed higher, up 0.62%, driven by a robust 9.52% rally in LIVINGTRUST. Market breadth stood at 2.14x with 47 gainers and 22 losers. Market capitalization improved slightly to ₦155.780 trillion from ₦155.152 trillion. Trading activity closed the day mixed, with turnover value decreased to ₦59.426 billion from ₦75.225 billion while volume traded increased to 1,414.972 million units from 1,268.25 million units.

Commentary

U.S. stocks are rising as the S&P 500 (+1.12%), Dow Jones (+1.06%), Nasdaq (+1.50%), and Russell (+0.98%) on falling oil prices and growing optimism over a potential resolution to Middle East tensions. European markets closed bullish. CAC (+2.24%), STOXX (+2.28%), DAX (+2.24%) and FTSE (+2.15%) as falling oil prices and optimism over a potential Iran peace deal, alongside strong corporate earnings, boosted investor sentiment. Asian markets closed bullish, Shanghai (+1.17%), Hang Seng (+1.22%) gained on easing geopolitical tensions and tech strength, while Nikkei (+0.38%) on tech gains despite a stronger yen.