Daily Financial Markets Update

Commentary

System liquidity opened with a surplus of ₦5.97 trillion. The Overnight (O/N) rate rose by 9bps to close at 22.23%, 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 23-Jul-2026 bill led the move, rising sharply by 37bps to 16.00%, while the 6-May-2027 bill also edged higher by 9bps to 15.84%. The 22-Oct-2026 bill bucked the trend, easing marginally by 4bps to 16.03%. The average benchmark rate rose by 2bps, closing at 16.07%.

Commentary

The FGN bond market traded on a bullish note today, buoyed by the outcome of yesterday's bond auction. The 25-Jun-2032 bond led gains, declining sharply by 30bps to 16.64%, while the 17-Apr-2029 bond also eased by 13bps to 16.66%. The DMO allotted ₦137.67bn on the 35s at a stop rate of 17.00% and ₦196.84bn on the 37s at 17.04%, with both tenors undersubscribed against a combined offer of ₦600bn. The average benchmark yield declined by 4bps, closing at 16.08%.

Commentary

The SSA Eurobond market traded on a bearish note today, as the fragile U.S.-Iran ceasefire continued to weigh on risk sentiment. With U.S. and Iranian forces having traded fire in the Strait of Hormuz and negotiations remaining deadlocked, investors grew increasingly cautious. Egypt saw the sharpest move, widening by 26bps to 7.65%, while Angola and Nigeria also rose by 10bps and 4bps to 7.26% and 7.23% respectively.

Commentary

The local bourse closed the day on a positive note, as the NGX All-Share Index (ASI) gained by 0.53% to close at 251,635.4 points, pushing the year-to-date return to 61.71%. Sectoral performance closed the day on a mixed note, reflecting cautious trading activities across the market. The Banking sector recorded a marginal gain of 0.98%, supported by a 2.74% appreciation in UBA. Similarly, the Industrial Goods sector advanced by 2.27%, driven by a 5.75% rally in BUACEMENT. On the downside, the Oil and Gas sector declined by 0.32%, weighed down by a 1.02% loss in ETERNA. The Consumer Goods sector also closed lower by 0.93%, led by 10.00% loss in UNILEVER, while the Insurance sector shed 1.64%, pressured by a 9.81% decline in SOVERENINS. Market breadth stood at 0.79x with 26 gainers and 33 losers. Market capitalization improved slightly to ₦161.279 trillion from ₦160.362 trillion. Trading activity closed the day bearish, with turnover value decreased to ₦32.148 billion from ₦37.045 billion while volume traded decreased to 703.95 million units from 800.46 million units.

Commentary

U.S. market is trading bearish, S&P 500 (-0.74%), Nasdaq (-0.83%), Dow Jones (-0.47%) and Russell (-1.21%) as inflation concerns weighed on technology and growth stocks. European markets closed largely bullish, STOXX (+0.27%), DAX (+0.49%), FTSE (+0.07%), and CAC (-0.07%) supported by improved investor sentiment amid hopes for renewed U.S.–Iran negotiations and resilient energy and banking stocks. Asian markets closed mixed, Shanghai (+0.92%), Hang Seng (+0.48%) on stronger tech sentiment, while Nikkei (-0.44%) as tech weakness offset positive economic data.