Daily Financial Markets Update

Commentary

System liquidity declined by 52% to close the week with a surplus of ₦2.79 trillion. The Overnight (O/N) rate closed the week flat 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 bearish note, with mixed price action across the curve. The 23-Jul-2026 bill led the move, rising sharply by 37bps to 16.00%, while the 18-Feb-2027 bill edged higher by 7bps to 16.27%. The 25-Mar-2027 bill bucked the trend, easing by 22bps to 15.88%. The average benchmark rate rose by 2bps, closing at 16.07%.

Commentary

The FGN bond market ended the week on a bearish note, with broad-based selling across the curve. The 18-Apr-2037 bond was the standout mover, surging by 173bps to 17.04%, while the 20-Mar-2027 and 15-May-2033 bonds also widened by 22bps and 17bps to 17.96% and 17.00% respectively. The 25-Jun-2032 and 29-Jan-2035 bonds bucked the trend, easing by 34bps and 11bps. The average benchmark yield rose by 10bps W-o-W, closing at 16.21%.

Commentary

The SSA Eurobond market ended the week on a bullish note, as optimism around a potential U.S.-Iran peace deal lifted risk sentiment. A leaked draft of a possible U.S.-Iran deal, reportedly mediated by Pakistan, circulated through markets, with reports suggesting an announcement could come within hours, driving broad-based demand across the region. Nigeria and Angola tightened by 2bps and 8bps to 7.17% and 8.10% respectively, while Egypt eased by 3bps to 7.27%.

Commentary

The local bourse closed the week on a negative note, as the NGX All-Share Index (ASI) declined by 0.25% week-on-week to close at 249,712.4 points, pulling the year-to-date return to 60.47%. Sectoral performance closed the week on a mixed note. The Banking sector recorded a modest gain of 1.11%, driven primarily by a 7.06% appreciation in STANBIC. Followed by Oil and Gas sector, which advanced slightly by 0.07%, supported by a 14.37% increase in JAPAULGOLD. On the downside, the Insurance sector laggard, declining by 1.76% as investors reacted to profit-taking activities, with SOVRENINS shedding 22.45% during the period. Similarly, the Consumer Goods sector also posted a decline of 0.84%, largely buoyed by a 5.41% fall in NASCON. Also, the industrial sector fell by 1.24%, led by a 14.85% decline in CAP. Market breadth stood at 1.11x with 30 gainers and 27 losers. Market capitalization declined slightly to ₦160.08 trillion from ₦160.80 trillion. Trading activity closed the week mixed, with turnover value decreased to ₦29.08 billion from ₦38.24 billion while volume traded increased to 711.86 million units from 678.18 million units.

Commentary

U.S. market is trading bullish, S&P 500 (+1.01%), Russell (+2.70%), Nasdaq (+0.82%), and Dow Jones (+2.35%) on easing pressure from the U.S. Treasury bond market, resilient corporate earnings, and strong growth in AI-driven technology sectors. European markets closed the week bullish, STOXX (3.25%), DAX (+4.13%), CAC (+2.00%) and FTSE (+2.66%), on progress in US-Iran diplomatic talks, stronger-than-expected first-quarter corporate earnings, and positive economic data. Asian markets closed the week mixed, Shanghai (-0.54%), Nikkei (+3.14%), and Hang Seng (-1.37) due to a tug-of-war between lingering Middle East geopolitical tensions, fluctuating oil prices, and mixed corporate earnings in the tech sector.