NGX ; Bulls Rebound with 0.09% Uptick, as Market Cap Soars N93.48bn

• Nibor Rises Across all Tenors

The NGX Exchange regained positive momentum on Tuesday, rebounding from Monday’s mild decline, as the All-Share Index rose by 0.09% to 166,256.83 points.

Market capitalization increased by N93.48 billion to N106.44 trillion.

Investor sentiment remained robust at 1.56x, with 39 gainers outpacing 25 losers, led by NPFMCRFBK, DEAPCAP, REDSTAREX, NCR, and MORISON, three of which advanced by 10%, while the remaining two gained 9.97%.

On the downside, ALEX, JAIZBANK, FTNCOCOA, UPDC, and CAVERTON recorded the steepest losses.

Sectoral performance was broadly positive, except for the banking sector, which declined by 0.69%, while insurance, consumer goods, oil and gas, and commodities rose by 2.80%, 0.02%, 2.40%, and 1.22%, respectively; the industrial goods sector closed flat.

Trading activity was mixed, as volume and value traded increased by 26.34% and 35.39% to 795.46 million units and N19.98 billion, respectively, while the number of deals declined by 21.51% to 45,410, indicating selective accumulation in high-volume stocks.

Money Market

Nigerian Interbank Offered Rates (NIBOR) increased across all tenors on Tuesday, as the overnight, 1-month, 3-month, and 6-month rates rose by 6bps, 33bps, 51bps, and 59bps, respectively, reflecting tight liquidity conditions in the banking system.

Meanwhile, money market funding costs were stable, with the Open Repo (OPR) rate unchanged at 22.50% and the overnight lending rate steady at 22.71%.

Conversely, yields in the Treasury Bills secondary market were largely lower, as the 1-month, 6-month, and 12-month maturities declined by 5bps, 8bps, and 1bp, respectively, while the 3-month tenor increased by 11bps.

Overall, the composite NT-Bills average yield edged up by 4bps to close at 18.14%, indicating negative investor sentiment driven by sell offs in the secondary market Bond Market

The FGN bond market closed on a weaker note, as average yields ticked up marginally by 0.01% to 16.87%, reflecting subdued local investor sentiment toward domestic fixed-income securities.

Similarly, Nigerian Eurobonds closed lower, as average yields rose 12bps to 7.26%, reflecting subdued international investor demand, particularly for longer-dated foreign-currency debt instruments.