FINANCIAL MARKETS TODAY-14 July 2021

FIXED INCOME MARKET

Stop rates for the 91 and 182-day tenors at the Nigerian Treasury Bills (NTB) Primary Market Auction (PMA) remained unchanged at 2.50% and 3.50% respectively, while the 364-day declined for the third consecutive auction to close at 8.67%, 48bps lower than its stop rate at the previous auction.

Money Markets

Banking system liquidity improved significantly, to open with ca ₦207.27 billion today, higher than the previous day’s deficit of ca -₦24.99 billion. As a result, Open Buy Back (OBB) and Overnight (ON) rates trended lower to close at 14.00% and 14.50% from 18.50% and 19.00%, respectively.

Treasury Bills

Mixed sentiments played out in the NTB secondary market, as market players anticipated the results of the NTB primary market auction held today.

Bonds

The FGN Bonds secondary market traded with a mixed theme, with buy interest seen on the 2023s and 2025s while improved offers were seen for the long-dated maturities, particularly on the 2036s, 2045s, and 2050s.

Eurobonds

The Eurobonds space also saw bullish sentiments today, with buy-side activity seen on select maturities.

Equities

The domestic bourse ended the day in the green, as the Nigerian Stock Exchange All Share Index (NSE ASI) recorded a gain of 0.04% day-on-day to close at 37,872.55pts while market year-to-date loss trimmed to -5.96%.

Foreign Exchange

In the parallel market, the Naira remained stable against the U.S Dollar and Pound Sterling at ₦505.00/$1.00 and ₦708.00/₤1.00 respectively, while depreciating against the Euro to ₦596.00/€1.00 from ₦595.00/€1.00.

Commodities

Global Crude Oil Prices fell today, following reports of negotiations between Saudi Arabia and the United Arab Emirates on production output. The recent agreement will enable members of the Petroleum Exporting Countries (OPEC) and its allies, to increase their production baseline after the current pact expires in April 2022.

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