Daily Financial Markets Update

Commentary

System liquidity rose by 14% to close the week with a surplus of ₦5.67 trillion. The Overnight (O/N) rate declined by 11bps to close the week at 22.19%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market ended the week on a bearish note, with mixed price action across the curve. The 11-Jun-2026 bill led the move, rising sharply by 70bps to 16.25%, while the 22-Apr-2027 bill edged higher by 5bps to 16.00%. The 11-Mar-2027 bill bucked the trend, easing by 13bps to 16.10%. The average benchmark rate rose by 2bps, closing at 16.04%.

Commentary

The FGN bond market ended the week on a mixed note, with a bearish undertone. The 27-Aug-2030 and 20-Mar-2027 bonds led the selloff, rising by 14bps and 11bps to 16.55% and 16.02% respectively, while the 17-Apr-2029 and 29-Jan-2035 bonds eased by 14bps and 9bps. The average benchmark yield rose by 1bp, closing at 16.10%.

Commentary

The SSA Eurobond market traded on a bearish note, as fighting flared in the Gulf and the UAE countered an Iranian air attack, dampening risk sentiment. Markets await Iran's response to the U.S. peace proposal, with any progress likely to support risk assets. Nigeria and Angola yields widened by 7bps and 13bps to 6.98% and 7.90% respectively, while Egypt eased sharply by 40bps to 7.06%.

Commentary

The local bourse closed the week on a positive note, as the NGX All-Share Index (ASI) advanced by 1.08% week-on-week to close at 242,163.9 points, pushing the year-to-date return to 57.30%. Sectoral performance closed the week on a mixed note but largely bullish, reflecting cautious yet sustained buying interest across the market. The Banking sector recorded a modest gain of 1.89%, driven primarily by a 9.32% appreciation in ETI over the week. Followed by the Insurance sector, which advanced by 4.00%, supported by a 20.67% increase in SOVRENINS. Similarly, the Consumer Goods sector also posted a positive performance, gaining 1.81%, largely buoyed by a 33.43% surge in DANGSUGAR. And the Industrial Goods sector emerged as one of the strongest performers, climbing 5.11%, underpinned by a remarkable 60.95% rally in CAP. On the downside, the Oil and Gas sector was the only laggard, declining by 3.27% as investors reacted to profit-taking activities, with ARADEL shedding 7.38% during the period. Market breadth stood at 1.15x with 46 gainers and 40 losers. Market capitalization improved slightly to ₦155.994 trillion from ₦145.334 trillion. Trading activity closed the week bullish, with turnover value increased to ₦104.29 billion from ₦44.51 billion while volume traded increased to 1,871.37 million units from 627.62 million units.

Commentary

U.S. market is trading bullish, S&P 500 (+2.49%), and Nasdaq (+5.07%), Dow Jones (+0.03%), and Russell (+1.91%) as tech gains and cooling rate fears outweighed weak consumer data. European markets closed mixed. CAC (-0.17%), STOXX (+0.04%), DAX (+0.29%) and FTSE (-1.38%) driven by cautious investor sentiment, geopolitical risks, and diverging corporate earnings results. Asian markets closed bullish, Shanghai (+1.65%), Hang Seng (+2.39%), and Nikkei (+5.78%) supported by growing optimism about de-escalation in the Middle East and strong gains in technology stocks.