Daily Financial Markets Update

Commentary

System liquidity opened with a surplus of ₦6.21 trillion. The Overnight (O/N) rate declined by 9bps to close at 22.14%, while Open Buy-Back (OBB) rate was unchanged, holding steady at 22.00%.

Commentary

The T-bills market traded on a quiet note today. The DMO conducted its NTB auction with a total offer of ₦650bn across three tenors, allotting a total of ₦829.33bn. The 364-day bill attracted the most demand at ₦1.84trn, allotted at a stop rate of 16.149%, marginally tighter than the previous auction's 16.15%. The average benchmark rate closed flat at 16.07%.

Commentary

The FGN bond market traded on a bearish note today, with broad-based selling across the curve. The 21-Jun-2053 and 15-May-2033 bonds led the selloff, rising by 21bps and 18bps to 14.95% and 17.00% respectively, while the 17-Apr-2029 bond also widened by 14bps to 16.81%. The short end remained largely unchanged. The average benchmark yield widened by 13bps, closing at 16.21%.

Commentary

The SSA Eurobond market traded on a bullish note today, as optimism around a potential U.S.-Iran framework deal lifted risk sentiment across the region. Reports indicate the U.S. offered Iran a framework deal that would end fighting and lead to a 30-day period of negotiations on a comprehensive agreement, providing some relief to investors. Egypt led gains, easing sharply by 23bps to 7.42%, while Angola tightened by 7bps to 8.19%. Nigeria closed flat at 7.23%.

Commentary

The local bourse closed the day on a negative note, as the NGX All-Share Index (ASI) fell by 1.02% to close at 249,063.7 points, pushing the year-to-date return to 60.05%. Sectoral performance closed largely bearish, reflecting subdued investor sentiment across the market. The Insurance sector was the only gainer, rising by 0.80%, supported by a 3.33% appreciation in NEM. On the downside, the Oil and Gas sector declined by 0.10%, weighed down by a 3.13% loss in OANDO. The Industrial Goods sector recorded the steepest decline, shedding 3.84% following a 10.00% drop in BUACEMENT. Similarly, the Consumer Goods sector fell by 0.45%, pressured by a 5.38% decline in INTBREW, while the Banking sector slipped by 0.31%, driven by a 3.36% loss in FCMB. Market breadth stood at 1.65x with 41 gainers and 25 losers. Market capitalization declined to ₦159.588 trillion from ₦161.279 trillion. Trading activity closed the day bearish, with turnover value decreased to ₦29.946 billion from ₦32.148 billion while volume traded decreased to 557.202 million units from 703.95 million units.

Commentary

U.S. market is trading bullish, S&P 500 (+0.93%), Nasdaq (+1.30%), Dow Jones (+1.07%) and Russell (+2.18%) as chip and AI stocks gained ahead of Nvidia earnings despite inflation and geopolitical concerns. European markets closed bullish, STOXX (+1.15%), DAX (+1.36%), FTSE (+0.99%), and CAC (+1.70%) on tech and industrial gains, easing UK inflation, AI optimism, and EU–US trade progress, despite Middle East tensions and higher oil prices. Asian markets closed bearish, Shanghai (-0.18%), Hang Seng (-0.57%), and Nikkei (-1.23%) pressured by rising bond yields, inflation concerns, and persistent Middle East tensions, which weighed heavily on technology and growth stocks.