Trading Tuesday - Nigeria’s Capital Market Surge, Rate Cut and Energy Financing Drive Domestic Momentum as Global Tariffs and Oil Bans Reshape Risk Landscape
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Market Overview
Good evening and welcome to today’s market wrap, where Nigeria’s capital market expanded to ₦123.93 trillion, the Central Bank’s 50bps rate cut to 26.50%, and fresh renewable energy financing initiatives signal a coordinated push to stimulate liquidity and growth. Meanwhile, NNPC’s planned Cawthorne crude exports reinforce efforts to boost FX earnings and production capacity. Globally, renewed trade tensions, EU energy policy shifts, and strategic mineral deals continue to shape investor sentiment and capital flows.
Nigerian News & Market Update
CBN Reduces Interest Rate To 26.50%:
The Central Bank of Nigeria has cut its Monetary Policy Rate by 50 basis points to 26.50% to support ongoing disinflation, maintain macroeconomic stability, and strengthen liquidity in the economy. - Channels
₦68.83trillion growth drives capital market’s GDP contribution to 33%:
Nigeria’s capital market has surged under the current administration, with the Securities and Exchange Commission reporting market capitalisation growth to ₦123.93trillion and its contribution to Nigeria’s GDP rising from 13% to 33%, though liquidity challenges remain. - Punch
NNPC to launch Cawthorne crude exports in March:
The NNPC Limited will begin exporting a new light, sweet crude grade called Cawthorne in March, aiming to boost Nigeria’s production, diversify export streams, and strengthen its position within OPEC. - BusinessDay
LOTUS Bank, REA Partner on ₦100bn Renewable Energy Financing Push:
LOTUS Bank and the Rural Electrification Agency have partnered on a ₦100billion financing initiative to accelerate renewable energy access, boost financial inclusion, and support off-grid power projects across underserved Nigerian communities. - Dmarketforces
Nigeria Sectoral Indices Performance
The table below shows that the NGX indices closed mixed for the day, with gains in Banking, Industrial Goods, Consumer Goods, Oil & Gas, and the Premium Board, while NGX 30, Insurance, NSE ASI, and Lotus Index declined.
Despite short-term pullbacks in some segments, week-to-date and month-to-date performance remains broadly positive across all sectors.
Oil & Gas, Premium Board, Industrial Goods, and Consumer Goods continue to lead year-to-date gains, highlighting sustained bullish momentum in the broader Nigerian market.
Fixed Income (FGN Bonds)
Global News & News Update
New US tariffs come in at lower 10% rate:
The U.S. imposed a new 10% global tariff on goods not covered by exemptions, lower than the initially threatened 15%, creating trade policy uncertainty. China signaled willingness to negotiate, while other countries sought assurance that existing trade deals would be honored. - Reuters
EU to propose permanent ban on Russian oil after Hungary election:
The European Commission plans to propose a permanent ban on Russian oil imports on April 15, aiming to fully phase out Russian oil by 2027 despite opposition from Hungary and Slovakia. - Reuters
China imposes export controls on 20 Japanese entities to curb ‘remilitarisation’:
China has blocked 20 Japanese companies from receiving dual-use items, targeting rare earths and critical minerals to curb Japan’s military expansion. Japan condemned the move as “completely unacceptable” and demanded their withdrawal. - Reuters
Glencore to buy almost $115 million of cobalt from industry veteran Weisfisch:
Glencore agreed to buy nearly 2,000 metric tons of cobalt worth $115 million from Rami Weisfisch, with the material set to be shipped to the U.S. for its strategic stockpile. The deal aims to secure critical minerals amid rising demand and supply restrictions from the Democratic Republic of Congo. - Reuters
Nippon Steel to raise $3.9 billion in Japan’s biggest convertible bond offer ever:
Nippon Steel launches Japan’s largest convertible bond, raising $3.85 billion to fund its U.S. Steel takeover and global expansion. - Reuters
China leaves benchmark lending rates unchanged for ninth straight month:
China kept its benchmark one- and five-year lending rates unchanged for the ninth consecutive month, maintaining 3.0% and 3.5% respectively. - Reuters
Indices, Commodities & Currencies
The table below depicts that the Global equities closed broadly positive, with gains across the S&P 500, Nasdaq, Nikkei, and Euro Stoxx, while the VIX declined, signaling improved risk sentiment. Energy markets were mixed as WTI and Brent edged higher, natural gas softened, metals mostly advanced (silver, platinum, copper) while gold dipped, and soft commodities showed weakness in cocoa and lumber. The U.S. dollar strengthened modestly, major currencies were mixed, and grains traded unevenly with gains in soybeans and wheat while corn and oats faced mild pressure.
Fixed Income (USA Bonds)
Event
Conclusion
Nigeria’s rate cut and expanding capital market depth may support short-term equity momentum and improved liquidity, particularly in financials, energy, and infrastructure-linked plays. However, global tariff adjustments, commodity supply realignments, and geopolitical trade tensions could drive volatility in FX, commodities, and export-sensitive sectors. Investors should position selectively, balancing domestic policy tailwinds with external macro risks and potential capital flow shifts.
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