June 10, 2025/Coronation Report

Summary

• Last week, the Federal Government declared Friday, June 6 and Monday, June 9, 2025, as public holidays in celebration of the 2025 Eid-el-Kabir. Consequently, the Nigerian Exchange (NGX) closed the trading week on Thursday, with the All-Share Index (ASI) recording another strong performance. The benchmark ASI and market capitalization gained 2.57% to close at 114,616.75 points and N72.28tn, respectively. This marked the highest year-to-date (YTD) return in 2025, rising from 8.56% the week prior to 11.36%.
• Last week, the DMO offered N450bn at the primary market auction across the standard tenors — a slight reduction from the N500bn offered previously. Demand was noticeably stronger, with total subscriptions climbing to N1.31trn from N1.17trn in the prior auction. This translated into a higher bid-to-offer ratio of 2.91x, up from 2.34x. Interestingly, despite the healthy demand, total allotment stood at only N450bn — matching the offer although lower than the N615.80bn allotted at the last auction. On the yield side, stop rates on the 91 day and 364 day papers dipped by 2bps and 21bps to close at 17.98% and 19.35% per annum, respectively, while the 182 day rate was unchanged at 18.50% per annum.
• Last week, Naira ended the holiday-shortened week with its highest appreciation since December 2024, gaining 2.13% w/w against the US Dollar to close at N1,553.12/US$1. The parallel market shared the same sentiment, appreciating by 2.13% w/w to close at N1,585.00/US$1. The market optimism was buoyed largely by inflows from portfolio investors during the week. The 1-month forward rate closed at N1,606.00/US$1. The 3-month forward contract rate closed at N1,675.50/US$1.
• Oil prices rose last week driven by a combination of supportive macroeconomic and supply-side factors. Renewed optimism over US – China relations, following a resumption of trade negotiations, lifted market confidence in the global economic outlook and future oil demand. A weaker U.S. dollar further supported prices by making crude more affordable for international buyers. On the supply side, OPEC+ signaled a more cautious approach to production increases, reinforcing expectations of tighter supply in the near term. At the same time, wildfires in Alberta disrupted Canadian oil production, temporarily removing significant volumes from the market.

For the full Coronation fixed income and exchange rate (CFEX) update, please click here