Markets Surge as Liquidity Swings and Risk Assets Rally
System liquidity moved sharply during the week, starting with a strong surplus of ₦4.68 trillion on Monday and peaking at ₦5.26 trillion on Tuesday before tightening mid week due to NTB and OMO auction settlements that pulled liquidity down to ₦3.02 trillion and ₦1.89 trillion. Funding rates were broadly stable, with the OPR holding at 22.50% throughout the week and the OVN rate averaging around 22.78%, ending at 22.71% on Friday.
In the fixed income market, The T bill market traded quietly early in the week but later turned mildly bullish, pushing the average NTB benchmark rate down by 11bps to 16.00%, with long tenor bills such as the 07 May 26 and 03 Dec 26 recording notable yield declines of 45–47bps. In the FGN bonds segment, improved sentiment and softer inflation supported buying activity, especially in mid tenor papers, resulting in a 7bps week on week drop in average benchmark bond yields to 15.92%.
Equities sustained a strong bullish run as high cap stocks—particularly MTNN, DANGCEM, BUAFOODS, BUACEMENT, and SEPLAT—lifted the All Share Index by 6.95% to 194,989.77 points, with sector indices broadly positive. Commodities also rallied, with Brent crude rising 5.92% to $71.76/bbl and gold gaining over 1% to close near $5,104.34/oz, while the naira ended the week at ₦1,346.30 per USD as external reserves climbed to $48.50 billion.
