FINANCIAL MARKETS TODAY – 30 July 2021

FIXED INCOME MARKET
Money Markets

System Liquidity remained buoyant, opening with a balance of ca ₦230.92 billion, higher than the previous day’s opening of ca ₦207.59 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 7.50% and 7.75% from 10.75% and 11.00% respectively, the previous day.

Treasury Bills

The NTB market ended the week on a muted note, although pockets of trades were executed on the 1yr NTB papers at c. 7.90%. Likewise, the OMO secondary market ended the week on a quiet note, with the average rate remaining stable, day-on-day.

Bonds

Activity in the FGN bonds secondary market ended the week with a bearish theme, with sell-offs seen predominantly on the 28s,36s, and 50s at 12.30,% 13.20%, and 13.40%, respectively. Consequently, the average yield rose by ca 11bps, day-on-day.

Eurobonds

The Eurobonds space saw bearish sentiments at the close of the week, with selloff activity seen mostly at the near end of the yield curve. Consequently, average yield rose by ca 1bp, day-on-day.

Equities

The domestic bourse closed the last trading day of the month in the green, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.16% day-on-day, to close at 37,547.08pts, while market year-to-date return receded to -4.28%. This was largely due to gains in MTN Nigeria Communications Plc (+0.55%) and Dangote Cement Plc (+0.04%).

Foreign Exchange

In the parallel market, the Naira appreciated against the U.S Dollar, Pound Sterling and Euro to ₦517.00/$1.00, ₦712.00/₤1.00 and ₦598.00/€1.00 from ₦520.00/$1.00, ₦715.00/₤1.00 and ₦600.00/€1.00 respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.44/$1.00 from ₦411.67/$1.00.

Commodities

Global crude oil prices maintained its recovery, posting weekly gains on the back of swift demand growth. Despite the resurgence of Coronavirus infections across the world, investors stay optimistic on the back of accelerated vaccinations. Thus, Brent Crude oil price rose ca 0.34% day-on-day to settle at $76.23pb, while WTI gained ca 0.16% to $73.75pb, as at report time. Spot Gold fell ca 0.55% day-on-day to $1,825.70 per ounce as at report time.

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