Global Market Updates:
U.S. Inflation Rises
The U.S. annual inflation rate accelerated to 2.9% in August 2025, the highest since January, after holding at 2.7% in both June and July, in line with market expectations. The uptick was driven by faster increases in food prices (3.2% vs. 2.9% in July), used cars and trucks (6.0% vs. 4.8%), and energy costs, which rose for the first time in seven months (0.2% vs. -1.6%).
On a month-on-month basis, Consumer Price Index (CPI) went up 0.4%, the strongest rise since January and above forecasts of 0.3%. Meanwhile, core inflation remained steady at 3.1% year-on-year, with core CPI up 0.3% month-on-month.
U.S. Equities Post Modest Gains
U.S. equities closed the week with modest gains. The Dow Jones S&P 500, and the NASDAQ advanced 1.0%, 1.6% and 2.0% respectively.
On a year-to-date, the indexes have returned + 13.0% (S&P 500), + 9.1% (Dow Jones), and + 15.2% (NASDAQ).
Nigerian Domestic Market Updates
The Nigerian Stock Market
The Nigerian Stock Market closed the week on a positive note as the benchmark NGX All-Share Index advanced 1.13% week-on-week to settle at 140,545.69 points. Market capitalization gained N985.2 billion, closing at N88.9 trillion.
The rally was largely driven by strong demand in WAPCO (+13.27% WoW), TRANSPOWER (+9.60% WoW), ARADEL (+6.61% WoW), and ZENITHBANK (+4.78% WoW). Consequently, the market’s year-to-date (YTD) return improved to 36.55%
On a sectoral basis, performance was mixed: Insurance sector gained 2.45%, while Oil and Gas sector (-2.38%), Consumer Goods (-1.69%), Banking sector (-1.68%), and Industrial Goods sector (-1.13%) all declined.
Fixed Income and Foreign Exchange (FX)
Treasury Bills
The Nigerian Treasury Bills (NTB) market traded quietly, with activity concentrated in select maturities. A widened bid-ask spread and selective demand across both the Open Market Operation (OMO) and Nigerian Treasury Bills (NTB) papers kept trading subdued, as investors awaited potential OMO auctions from the CBN to mop up excess liquidity.
Overall, average NTB yields declined 7bps week-on-week to 17.23%, reflecting mild buying interest.
Eurobonds
Nigerian Eurobonds opened the week with mixed sentiment, recovering from previous week’s negative momentum ahead of the anticipated U.S. Consumer Price Index release. Yields compressed by 6bps midweek, closing at 7.84%, supported by expectations of a Fed rate cut in September despite the rise in U.S. inflation.
Overall, Nigerian Eurobond yields fell 3bps week-on-week to 7.84%.
Federal Government of Nigeria (FGN) Bonds
The FGN bonds market traded subdued through the week with strong demand outpacing supply across the curve which resulted in a drop in yields.
This bullish sentiment was largely driven by speculation from market players around a potential rate cut at the upcoming Monetary Policy Committee (MPC) meeting scheduled for September 22-23, 2025.
Overall, average yields declined by 53bps week-on-week, closing at 16.47%.
Foreign Exchange
This week, the naira appreciated by 88bps week-on-week, closing the week at ₦1,501.50 to $1.
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