Daily Financial Markets Update

Commentary

System liquidity rose by 115% to close the week with a surplus of ₦6.02 trillion. The Overnight (O/N) rate declined by 5bps to close the week at 22.19%, while Open Buy-Back (OBB) rate was held steady at 22.00%.

Commentary

The T-bills market closed the week on a mixed note. Meanwhile, the CBN conducted an OMO auction across three tenors, attracting total subscriptions of ₦2.54trn against an offer size of ₦600bn, with total allotments of ₦1.94trn. The 102-day bill recorded the strongest demand, clearing at a stop rate of 20.37%, while the average benchmark yield remained unchanged at 16.08%.

Commentary

The FGN bond market closed the week on a bearish note, with sell pressure observed across the curve. The 27-Aug-2030 bond led losses, with its yield rising by 57bps to 16.79%, while the 25-Jun-2032 and 21-Jun-2038 bonds advanced by 28bps and 38bps, respectively. In contrast, the 20-Mar-2027 bond declined by 9bps to 17.87%. Consequently, the average benchmark yield increased by 8bps to close at 16.32%.

Commentary

The SSA Eurobond market closed the week on a bullish note, supported by improved investor sentiment amid optimism over a potential U.S.-Iran peace agreement. Reports indicate that U.S. and Iranian negotiators have agreed to extend the ceasefire by 60 days and commence talks on Iran's nuclear program, pending approval from President Trump. Sovereign yields tightened across the region, with Angola leading gains as yields declined by 24bps to 7.86%, while Egypt and Nigeria eased by 21bps and 15bps to 7.07% and 7.02%, respectively.

Commentary

The local bourse closed the week on a positive note, as the NGX All-Share Index (ASI) improved by 0.27% week-on-week to close at 250,385.7 points, pushing the year-to-date return to 60.90%. Sectoral performance closed the week on a mixed note. The Insurance sector recorded a gain of 1.14%, driven primarily by a 20.61% appreciation in SOVERENINS. Followed by Oil and Gas sector, which advanced by 2.53%, supported by a 5.33% increase in ARADEL. On the downside, the banking sector laggard, declining by 2.43% as investors reacted to profit-taking activities, with FIDELITYBK shedding 9.40% during the period. Similarly, the Consumer Goods sector also posted a decline of 1.52%, largely buoyed by a 18.22% fall in DANGSUGAR. Also, the industrial sector fell by 0.07%, led by a 10.00% decline in CAP. Market breadth stood at 0.91x with 30 gainers and 33 losers. Market capitalization improved slightly to ₦160.51 trillion from ₦160.08 trillion. Trading activity closed the week bullish, with turnover value increased to ₦43.432 billion from ₦29.08 billion while volume traded increased to 1,204.65 million units from 711.86 million units.

Commentary

U.S. market is trading bullish week on week. S&P (+1.23%), Nasdaq (+2.01%), Dow Jones (+0.57%), and Russell (+1.79%) on strong gains in AI and semiconductor stocks, optimism over a potential US–Iran deal, easing oil prices, and strong gains in technology and semiconductor stocks. European markets closed the week largely bullish, STOXX (+0.07%), DAX (+0.71%), and CAC (+0.83%) on easing inflation, lower oil prices, and optimism over a potential US–Iran agreement, while FTSE (-0.54%) amid geopolitical uncertainty and weakness in heavyweight stocks. Asian markets were mixed week-on-week, Nikkei (+4.72%) on easing Middle East tensions, lower oil prices, and AI optimism, while Shanghai (-1.08%) and Hang Seng (-1.65%) amid weakness in technology stocks.