The Nigerian equities market closed on a marginally positive note, with the benchmark index advancing by 4bps, bringing the year-to-date return to an impressive 62.27%.
Market activity remained strong, as trading volume advanced by 21.40% to 1.77 billion shares, while total value traded edged higher by 22.16% to ₦100.24 billion, reflecting sustained investor interest across the market.
Market breadth remained firmly positive, with 44 gainers against 32 decliners, indicating resilient bullish sentiment across several counters.
On the sectoral front, the banking sector dominated trading activity for the third consecutive session this week, recording the highest volume and value of trades. Meanwhile, the insurance sector emerged as the top-performing sector, posting a strong daily gain of 0.68%. Although the oil and gas sector declined today, it maintained the strongest year-to-date performance, delivering an impressive return of 125.29%.
On the performance chart, DAARCOMM and CWG led the gainers’ table, while NCR topped the laggards’ list, followed by ZICHIS.
On the corporate front, several companies announced upcoming Annual General Meetings (AGMs) and directors’ dealings.
Fixed Income Market
System liquidity retracted sharply today to ₦4.86 trillion net negative. Despite the weakened liquidity position, the Overnight (O/N) rate fell by 5bps. Meanwhile, the Nigerian Overnight Financing Rate (NOFR) and the Open Repo Rate remained unchanged at 22.00%.
Trading activity in the FGN bond market remained mild, with the average yield closing flat at 16.08% (unchanged from the previous session). However, the short end of the curve saw mixed performance, with yields edging slightly higher by 2bps.
In the NTB market, instruments with less than 90 days to maturity (DTM) recorded mild buying interest, pushing yields down by 1bp. The rest of the market saw mixed trading activity. Overall, the average yield inched higher by 2.6bps to close at 17.43% (from 17.40%).
Nigeria’s Eurobonds pivoted from their recent bearish run, with the average yield easing marginally by 0.9bp to close at 6.80% (from 6.81%). Despite persistent global market uncertainty, oil prices declined today driven by a third consecutive weekly drawdown in US oil stockpiles and a drop in Saudi Arabia’s crude production. Additionally, Nigeria’s external reserves have begun to pick up, albeit modestly, providing a mild boost to bond market sentiment.
Currency Market
Today, the naira appreciated against the dollar at the NAFEM window, with the USD/NGN pair declining by 0.3% to close at ₦1,370.56.
Meanwhile, Nigeria’s external reserves edged higher to $48.45 billion, supported by increased offshore portfolio participation in the domestic market.
In the commodities market, Brent crude oil prices declined by 3.8% to settle at $105.75 per barrel, reflecting a typical pullback in an otherwise highly volatile market still influenced by the ongoing US-Iran conflict and related supply concerns.
