FINANCIAL MARKETS TODAY – 27 July 2021

FIXED INCOME MARKET
Money Markets

System liquidity opened at ca ₦9.08 billion today, a slight improvement from yesterday’s deficit balance of ca -₦18.02 billion as the repayment of OMO maturities hit the system. However, Open Buy Back (OBB) and Overnight (ON) rates trended higher to close at 15.75% and 16.25% from 15.00% and 15.75% respectively, the previous day.

Treasury Bills

The NTB secondary market traded sideways today, with buying interest seen on maturities at the short-mid end of the NTB curve, particularly the Oct’21 to Jan’22 papers, while offers were witnessed at the long end of the curve at around 8.10% levels. However, few trades were executed as market players remain cautious ahead of tomorrow’s NTB auction. Conversely, the Open Market Operation (OMO) secondary market had a bullish theme, with demand seen across the mid-long end of the curve. Thus, average yield fell ca 5bps day-on-day.

Bonds

Mixed sentiments played out in the FGN bonds secondary market today, with demand witnessed at the near end of the yield curve while improved offers were seen for the 2035s, 2049s and 2050s at 13.15%, 13.00% and 13.25% levels respectively. Overall, average yields rose c.3bps, day-on-day.

Eurobonds

Trading activities in the Eurobond space ended on a relatively quiet note, with average yields remaining stable day-on-day.

Equities

The bullish trend in the domestic bourse was halted today, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost ca 0.12% day-on-day to close at 38,802.15pts, while market year-to-date loss rose to -3.65%. This was largely due to losses in MTN Nigeria Communications Plc (-1.15%) and Guaranty Trust Holding Company Plc (-0.34%).

Foreign Exchange

In the parallel market, the Naira remained stable against the U.S Dollar, Pound Sterling and Euro at ₦504.00/$1.00, ₦703.00/₤1.00 and ₦592.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.67/$1.00 from ₦411.50/$1.00.

Commodities

Global crude oil prices declined today, as surging coronavirus cases continue to dampen investors’ optimism of a steady demand recovery for oil. Thus, Brent Crude oil price lost ca 0.34% day-on-day to settle at $74.25pb, while WTI lost ca 0.71% to $71.40pb, as at report time. Spot Gold rose ca 0.14% day-on-day to $1,801.70 per ounce as at report time.

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