Daily Financial Markets Update

Commentary

System liquidity rose by 3.4% to close the week with a surplus of ₦5.23 trillion. The Overnight (O/N) rate rose by 5bps to close the week at 22.24%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market ended the week on a mixed note. The CBN conducted an OMO auction, attracting a total subscription of ₦2.12trn against a total offer of ₦600bn, with total sales of ₦2.05trn. Nigeria's April inflation printed at 15.69% y/y, slightly higher than March's 15.38%, though the market reaction remained muted. The average benchmark rate rose by 1bp, closing at 16.04%.

Commentary

The FGN bond market ended the week on a bearish note, with the 17-Apr-2029 and 29-Jan-2035 bonds leading the selloff, rising by 43bps and 26bps to 16.80% and 16.95% respectively. Nigeria's April inflation print of 15.69% y/y, above March's 15.38%, added further pressure to sentiment. The average benchmark yield rose by 1bp, closing at 16.11%.

Commentary

The SSA Eurobond market ended the week on a bearish note, as escalating geopolitical tensions weighed heavily on risk sentiment. Tensions flared near the Strait of Hormuz as a ship was seized and another sunk, rattling investors and driving a broad selloff across the region. Angola led the move, rising by 29bps to 8.18%, while Nigeria and Egypt widened by 21bps and 24bps to 7.19% and 7.30% respectively.

Commentary

The local bourse closed the week on a positive note, as the NGX All-Share Index (ASI) advanced by 2.57% week-on-week to close at 250,330.9 points, pushing the year-to-date return to 60.87%. 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 2.82%, driven primarily by a 20.77% appreciation in ETI over the week. Followed by the Insurance sector, which advanced by 2.74%, supported by a 17.13% increase in SOVRENINS. Similarly, the Consumer Goods sector also posted a positive performance, gaining 1.65%, largely buoyed by a 21.43% surge in UNILEVER. And the Industrial Goods sector emerged as one of the strongest performers, climbing 4.66%, underpinned by a remarkable 55.57% rally in BERGER. On the downside, the Oil and Gas sector was the only laggard, declining by 1.19%, with ARADEL shedding 2.40% during the period. Market breadth stood at 1.74x with 47 gainers and 27 losers. Market capitalization improved slightly to ₦160.80 trillion from ₦157.094 trillion. Trading activity closed the week bearish, with turnover value decreased to ₦38.24 billion from ₦55.04 billion while volume traded decreased to 678.18 million units from 1,066.49 million units.

Commentary

U.S. market is trading mixed week-on-week, S&P 500 (+0.26%), and Nasdaq (-0.02%), Dow Jones (-0.17%), and Russell (-2.43%) due to rising yields, inflation concerns, and risk-off sentiment driven by oil-led geopolitical tensions and uncertainty around US–China trade progress. European markets closed bearish week-on-week. CAC (-1.78%), STOXX (-0.93%), DAX (-1.74%) and FTSE (-0.40%) due to rising geopolitical tensions, higher oil prices, and risk-off sentiment driven by uncertainty around US–China trade negotiations. Asian markets closed bearish, Shanghai (-1.07%), Hang Seng (-1.63%), and Nikkei (-2.08) driven by a combination of surging energy costs, rising U.S. inflation risks, and geopolitical tensions in the Middle East.