FINANCIAL MARKETS TODAY – 26 July 2021

FIXED INCOME MARKET
Money Markets

System liquidity opened the week in a deficit of ca -₦18.02 billion, significantly lower than Friday’s opening balance of ca ₦521.54 billion. Nevertheless, Open Buy Back (OBB) and Overnight (ON) rates trended lower to close at 15.00% and 15.75% from 27.50% and 28.75% respectively, the previous day.

Treasury Bills

The NTB market reflected a mixed theme, with buying interest seen on the Jan’22 papers at c.5.70% while improved offers were witnessed on the Jun’22 and Jul’22 maturities at c.8.00% ahead of the NTB auction this week. Overall, average rates gained ca 3bps day-on-day. Similarly, sell-side activities were witnessed at the long-end of the yield curve in the OMO secondary market, with average rates gaining c.4bps across the OMO curve.

Bonds

The FGN bonds secondary market started the week with a mixed to bearish undertone. The short tenors on the yield curve (2022s, 2023s and, 2024s) witnessed slight buying interest while improved offers were seen on select maturities, particularly for the 2035s, 2036s and, 2050s at c. 13.10%, 13.11%, and 13.25% respectively. Overall, average yields rose c.6bps, day-on-day.

Eurobonds

Activities in the Eurobond market opened the week on a relatively quiet note, with average yields remaining stable day-on-day.

Equities

The domestic bourse started the week with a bullish performance, due to gains recorded in stocks such as Airtel Africa Plc (+2.33%) and Guaranty Trust Holding Company Plc (+0.17%), respectively. The NSE All Share Index gained c.0.47% day-on-day to close at 38,849.08pts while market year-to-date loss pared to -3.53%.

Commodities

Global crude oil prices remained stable today, despite reports of the continued rise in Coronavirus cases and the extension of lockdown measures to curb the spread across the world. Investor’s optimism for a sustained recovery in oil demand were dampened, although expectations of tight supplies in the market elevated price movements. Thus, Brent Crude oil price lost ca 0.12% day-on-day to settle at $74.01pb, while WTI lost ca 0.57% to $71.66pb, as at report time. Spot Gold lost ca 0.08% day-on-day to $1,800.30 per ounce as at report time.

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