…The Naira appreciated by 0.67% to close at ₦1357.34
The Nigerian equities market closed on a positive note, with the benchmark index advancing by 0.41%, bringing the year-to-date return to an impressive 55.98%. The All-Share Index advanced by 41 basis points to close at 242,729.51 points, reversing the previous session’s bearish outcome. The recovery was driven by broad-based buying interest, with banking and consumer goods counters leading the charge, as improved investor sentiment lifted the bourse
Market sentiment was improved by appreciations in AIRTELAFRI, CAP, VITAFOAM, DANGSUGAR, WEMABANK, NAHCO, FIRSTHOLDCO, ZENITHBANK and UNILEVER, despite losses in MTNN, UBA, ACCESSCORP, OANDO and NB.
Market breadth strengthened significantly, closing firmly positive with 47gainers against 22 decliners, while 58 stocks remained unchanged. This reflects a broadly bullish underlying sentiment despite mixed performance across some counters.
On the sectoral front, the banking and technology sectors dominated trading activity, accounting for the highest volume and value of trades. The insurance sector led the market with a solid daily gain of 0.62%, emerging as the top-performing sector.
Sectoral performance was broadly positive, with four of the five tracked indices closing higher. The Insurance index (+0.62%) set the
pace, advancing on the back of gains in AIICO (+4.65%), REGALINS (+4.17%), and ROYALEX (+3.68%), while the Banking index (+0.51%) was supported by upticks in WEMABANK (+5.44%), FCMB (+4.07%), ZENITHBANK (+0.62%), and FIDELITYBK (+1.25%). The Consumer & Industrial Goods (+0.26% & +0.05%) indices also edged higher, driven by DANGSUGAR (+8.42%), UNILEVER (+1.82%), VITAFOAM (+9.09%), CAP (+9.99%) and BERGER (+9.85%), respectively. On the flip side, the Oil & Gas (-0.01%) was the sole loser, subdued by declines in OANDO (-0.55%) and JAPAULGOLD (-0.93%).
On the performance chart, AIRTELAFRI and CAP topped the gainers’ table, while SUNUASSUR led the losers, followed by GUINNESS.
On the corporate front, several companies announced upcoming Annual General Meetings (AGMs).
Fixed Income Market
Today, system liquidity expanded sharply, rising to ₦6.62 trillion from ₦1.18 trillion. Despite this significant liquidity build-up, the Overnight (O/N) rate edged higher by 4bps to 22.17%.
Meanwhile, both the Nigerian Overnight Funding Rate (NOFR) and the Open Repo Rate remained unchanged.
In the FGN bond space, market sentiment improved modestly, with the average yield declining by 1 bp to 16.08% from 16.09%. However, activity at the long end of the curve remained relatively subdued, indicating cautious positioning by investors.
Similarly, the NTB market recorded improved trading activity, with average yields easing slightly by 1 bp to 17.47% from 17.48%, reflecting mild buying interest while the Bonds market closed flat at 15.77%.
In the external market, Nigeria’s Eurobonds sustained their bullish momentum, with average yields compressing by 7.6bps to 6.69% from 6.77%. This rally was underpinned by improving global risk sentiment, driven by renewed US–Iran negotiations and increasing optimism around a potential peace deal.
Currency Market
Today, the naira appreciated against the dollar at the NAFEM window, with the USD/NGN pair declining by 0.7% to close at ₦1,357.34.
Meanwhile, Nigeria’s external reserves extended their downward trend, declining to $48.34 billion as of May 4.
In the commodities market, Brent crude prices fell by 7.7% to settle at $101.85per barrel, driven primarily by easing geopolitical tensions in the Middle East. This may be linked to growing optimism around a potential U.S.–Iran peace deal to resolve the ongoing conflict.
