Daily Financial Markets Update

Commentary

System liquidity opened with a surplus of ₦5.32 trillion. The Overnight (O/N) rate declined by 5bps to close at 22.16%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market traded on a bearish note today, with selling pressure emerging across the curve. The 3-Dec-2026 bill led the move, rising sharply by 18bps to 16.35%, while the 6-May-2027 bill edged higher by 5bps to 15.85%. The 22-Apr-2027 bill bucked the trend, easing by 7bps to 15.92%. The average benchmark rate rose by 3bps, closing 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 was the key mover, easing by 11bps to 16.82%, while the 20-Mar-2027 bond edged marginally higher by 4bps to 17.85%. All other bonds remained unchanged. The average benchmark yield closed flat at 16.08%.

Commentary

The SSA Eurobond market traded on a mild bullish sentiment despite U.S. Producer Price Index printing at 1.0% in April against market expectations of 0.3% and a prior reading of 0.2%, stoking broader inflation concerns and weighing on risk sentiment. Nigeria and Angola yields eased marginally by 1bp and 3bps to 7.05% and 7.98% respectively, while Egypt bucked rose by 2bps to 7.17%.

Commentary

The local bourse closed the day on a positive note, as the NGX All-Share Index (ASI) gained 0.4% to close at 252,508.2 points for the day, pushing the year-to-date return to 62.27%. Sectoral performance closed the day on a mixed note, as the 0.4% gain in the All-Share Index signalled overall market resilience despite a bearish tilt in several sectors. The Banking sector recorded a decrease of 2.53%, driven by a sell-off in JaizBank (-3.33%), the Consumer Goods sector declined by 1.53%, led by a fall in CHAMPION (-8.75%), the Oil and Gas sector slipped marginally by 0.03%, pressured by a decline in ETERNA (-9.59%). On the positive side, the Industrial Goods sector posted a modest gain of 0.93%, supported by buying interest in BERGER (+9.97%). The Insurance sector saw slight improvement, up 0.68%, following an increase in INTENEGINS (9.96%). Market breadth stood at 1.23x with 37 gainers and 30 losers. Market capitalization improved to ₦162.05 trillion from ₦161.61 trillion. Trading activity closed the day mixed, with turnover value increased to ₦109.44 billion from ₦87.71 billion while volume traded decreased to 1,683.09 million units from 2,027.90 million units.

Commentary

U.S. market is trading mixed, S&P 500 (+0.23%), Nasdaq (+0.77%), Dow Jones (-0.46%), and Russell (-0.16%) largely due to a combination of investor anxiety surrounding AI-related tech stocks, weak earnings reports from major companies and a general cautiousness regarding US-Iran tensions. European markets closed bullish. STOXX (+0.66%), DAX (+0.61%), CAC (+0.35%) and FTSE (+0.58%) driven by a focus on corporate earnings despite ongoing Middle East tensions and inflation. Asian markets closed the day bullish, the Shanghai (+0.67%), Hang Seng (+0.15%), Nikkei (+0.84%) on investor optimism surrounding the Trump-Xi summit and sustained demand for technology service shares.