The Nigerian equities market maintained its upward trajectory, closing on a positive note as the benchmark index rose by 0.28 percent, pushing the year-to-date return to 30.56 percent.
Despite the gain, market activity weakened significantly, with trading volume dropping by 35.13 percent, reflecting subdued investor participation.
Total trade value also declined by 2.10 percent. Market breadth closed negative, as 27 stocks recorded losses compared to 24 gainers, suggesting a mildly bearish undertone beneath the overall market growth.
Top gainers for the session included TRANEXPR and INTENEGINS, while LIVINGTRUST led the decliners, followed by RTBRISCOE.
Sectoral performance showed that the financial services industry remained the primary driver of market activity, buoyed by strong trading in banking stocks. Notably, ACCESSCORP emerged as the most traded stock, rising from its position as the second most traded in the previous session.
On the corporate front, the Nigerian Exchange (NGX) announced the delisting of DN Tyre & Rubber Plc and Greif Nigeria Plc due to non-compliance with regulatory requirements.
Fixed Income Market Shows Mixed Sentiment
In the interbank segment, funding conditions remained stable, with the Open Repo Rate (OPR) and Overnight (O/N) rate unchanged at 22.00 percent and 22.31 percent, respectively.
The local bond market recorded mild bullish sentiment, as yields declined marginally by an average of 1.9 basis points.
Demand was concentrated on 2023 and 2034 maturities, while mid-tenor instruments between 2029 and 2032 experienced some selling pressure, resulting in a 7 basis points increase in yields.
The Treasury bills market remained robust, extending strong demand from the primary auction into the secondary market. The auction recorded a bid-to-cover ratio of 4.04 times, with the highest demand seen in the 364-day tenor at 4.8 times, leading to a 23 basis points drop in the stop rate. Continued buying interest in the secondary market further drove yields lower by 14.2 basis points.
Conversely, the Eurobond market faced a risk-off sentiment, with yields rising by an average of 5.6 basis points.
Naira Appreciates as Reserves Dip Slightly
In the currency market, the naira appreciated by 2.0 percent against the US dollar to close at ₦1,358.82. The USD/NGN pair strengthened by 1.6 percent month-to-date and 4.8 percent year-to-date.
However, Nigeria’s foreign reserves declined marginally by 0.1 percent, as the Central Bank of Nigeria continued its foreign exchange interventions.
Meanwhile, global oil prices rose, with Brent crude oil gaining 4 percent amid mixed investor reactions to developments surrounding a truce between the United States and Iran.
