Daily Financial Markets Update

Commentary

System liquidity opened with a surplus of ₦6.96 trillion. The Overnight (O/N) rate rose by 8bps to close at 22.25%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market traded on a quiet note today, as investors focused on the OMO auction. The CBN allotted a total of ₦1.59tn across the 3 maturities from a total subscription of ₦1.64tn. As a result, the average benchmark rate closed flat at 16.04%.

Commentary

The FGN bond market traded on a quiet note today, with minimal activity across the curve. The 25-Jun-2032 bond edged higher by 10bps to 16.84%, while the 20-Mar-2027 bond rose marginally by 5bps to 17.94%. All other bonds remained unchanged. The average benchmark yield closed flat at 16.09%.

Commentary

The SSA Eurobond market traded mixed today, with profit-taking eroding part of the prior session's gains. Investor sentiment remained cautious, though near-term outlook could improve as reports suggest Iran and the U.S. are exploring a short-term arrangement aimed at de-escalating ongoing hostilities. Any progress on this front would likely provide a supportive backdrop for risk assets in the immediate term. Consequently, Nigeria yields closed flat at 6.98%, while Egypt eased by 6bps to 6.98%. Angola bucked the trend, widening sharply by 20bps to 7.79%.

Commentary

The local bourse closed the day on a negative note, as the NGX All-Share Index (ASI) declined by 1.23% to close at 239,734.6 points for the day, pulling the year-to-date return to 54.02%. 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 1.11%, led by a 6.07% sell-off in ACCESSCORP. Similarly, Industrial Goods edged lower by 5.45%, dragged down by a 6.5% drop in BUACEMENT, while Consumer Goods slipped by 2.91% due to pressure from a 1.55% sell-off in INTBREW. On the positive side, Oil and Gas sector posted a modest gain of 0.39%, supported by buying interest of 0.91% in SEPLAT. The Insurance sector also closed higher, up 1.51%, driven by a robust 9.57% rally in SOVEREINS. Market breadth stood at 1.37x with 41 gainers and 30 losers. Market capitalization declined slightly to ₦153.858 trillion from ₦155.780 trillion. Trading activity closed the day bullish, with turnover value increased to ₦72.17 billion from ₦59.43 billion while volume traded increased to 1,830.09 million units from 1,414.97 million units.

Commentary

U.S. market is trading mixed, S&P 500 (+0.05%), and Nasdaq (+0.41%) as strong corporate earnings and continued AI-driven optimism boosted technology stocks, while Dow Jones (-0.14%), and Russell (-0.68%) as weakness in energy and broader cyclical stocks weighed on sentiment. European markets closed bearish. CAC (-1.17%), STOXX (-1.02%), DAX (-0.99%) and FTSE (-1.55%) as disappointing corporate earnings and lingering uncertainty over a Middle East peace deal weighed on investor sentiment despite lower energy prices. Asian markets closed bullish, Shanghai (+1.57%), Hang Seng (+0.48%), and Nikkei (+5.58%) supported by growing optimism about de-escalation in the Middle East and strong gains in technology stocks.