Global Market Updates:
Tarriff Negotiations Continue
Ahead of an August 1 deadline set by the Trump administration, investors continued to closely track U.S. tariff negotiations with key trading partners. The administration announced progress toward deals with countries such as Japan and Indonesia, while negotiations continued with other partners such as the European Union, India, and Canada.
U.S. Equities Rebounds
The S&P 500 and the NASDAQ pushed their record levels higher for the fourth week.
On a year-to-date (YTD), the S&P 500, Dow Jones and NASDAQ returned +1.5%, +1.3% and +1.0%, respectively.
Nigeria Domestic Market Updates
CBN keeps interest rates steady at 27.5%
The central bank of Nigeria (CBN) kept the interest rate unchanged at 27.5% during its 301st Monetary Policy Committee (MPC) Meeting held between July 21st and 22nd, 2025, holding it steady for a third consecutive meeting. The apex bank cited disinflation momentum and spillovers from global trade tensions and geopolitical volatility as rationale for its decision.
Inflation eased modestly to 22.22% in June, down from 22.97% in May, marking the third straight month of decline. The CBN highlighted FX demand pressures, power costs, and food supply as key risks that could push inflation higher in the future.
The Nigerian Stock Market: Bullish Momentum Continues
The Nigerian Stock Exchange extended its bullish run on the back of positive corporate earnings. The rally on the NGX lifted the All-Share Index by +2.2% week-on-week to 134,452.93 points and boosting Year-to-Date returns to 30.6%.
The market capitalisation climbed to ₦85.1 trillion, though trading activity fell sharply, with average volume and value down over 85% each.
All tracked sectors closed in positive territory, led by Industrial Goods – WAPCO and BUACEMENT (+4.7%) and Insurance – SOVRENINS (+3.1%).
Consumer Goods and Banking indices rose on strong interest in DANGSUGAR, GUINNESS, and WEMABANK, while Oil & Gas also firmed, with OANDO and LEGENDINT driving a +0.9% gain, and AFR-ICT edged up modestly with marginal gains
Overall sentiment remained bullish despite lower turnover, underpinned by earnings optimism and sector-wide strength.
Fixed Income and Foreign Exchange (FX)
The Nigerian treasury bills market traded at the long end, defying early-week liquidity constraints, after the MPC held the Monetary Policy Rate (MPR) steady at 27.5%. Strong investor appetite persisted at the Debt Management Office (DMO) primary auction, with bids more than doubling the ₦290 billion offered. All instruments were fully allotted, and intense demand pushed stop rates significantly lower across tenors. The 91-day, 182-day, and 364-day bills cleared at 15.00%, 15.50%, and 15.88%, respectively — down from prior levels. Market sentiment remained cautious yet supportive, leading to moderate interest in the secondary market. Post-auction, buy-side momentum continued, with sustained demand particularly focused on longer tenors.
Average benchmark yield dropped 11bps week-on-week to 17.6%, reflecting bullish undertone.
The African Eurobond market posted gains amid improved global risk sentiment and easing trade tensions. Positive signals from U.S. trade deals with Japan and the European Union —cutting tariffs from 25–30% to 15% — bolstered investors’ confidence. The Nigerian Eurobond curve traded with a mildly bullish bias, supported by steady demand. Intermittent profit-taking was observed but failed to derail the overall positive tone. Broad-based buying pressure led to a downward shift in yields across maturities. Investors rotated into higher-duration assets amid calmer global markets.
Average Nigerian Eurobond yields declined 22bps week-on-week to settle at 8.17%.
The FGN bonds market traded mixed but closed the week with a bullish tilt, underpinned by improved system liquidity. Yields on short-dated bonds like the 2027 and 2028 papers rose early in the week amid mild selling pressure. In contrast, strong demand for mid-to-long tenors — especially the 2032, 2034, 2049, and 2053 maturities — drove yield compressions. Investor’s sentiment was lifted midweek by the release of the July bond auction circular, offering ₦80 billion across 2029 and 2032 notes. This spurred renewed interest at the short-to-mid segment of the curve. Bullish momentum intensified into week’s end as investors positioned ahead of the auction.
Overall, average bond yields declined 20bps week-on-week, settling at 16.11%
Foreign Exchange
This week, the naira weakened by 0.16% week-on-week to close at N1,534.72 to $1.
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