FINANCIAL MARKETS TODAY – 04 August 2021

FIXED INCOME MARKET

Money Markets

System Liquidity improved slightly today, opening with a balance of ca ₦155.00 billion, higher than the previous day’s opening of ca ₦138.55 billion. The Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 8.50% and 9.00% from 7.50% and 8.00% respectively, the previous day.

Treasury Bills

The NTB secondary market saw subdued activity today, however few trades were executed on the 09 June 2022 and 14 July 2022 papers at 7.90% and 7.80% levels respectively. Thus, average rate fell by ca 2bps, day-on-day. The OMO market remained quiet, with a bullish undertone as offers continues thin out due to scarcity of supply. Average rate fell by ca 7bps, day-on-day.

Bonds

The FGN secondary market traded sideways today. Some demand was seen on the 2023s to 2026s, but dearth of offers ensured muted activity at that end of the curve. However, the 2027s, 2035s, 2036s, 2045s and 2050s witnessed mild traction at 12.45%, 13.25%, 13.28%, 12.85% and 13.40% levels respectively. Consequently, the average yield remained relatively stable, day-on-day.

Eurobonds

The Eurobonds space sustained its quiet stance today, with pockets of offers seen on selected maturities. Average yield gained ca 1bp, day-on-day.

Equities

The Nigerian Equities Market sustained its positive performance, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.03% day-on-day, to close at 38,927.83pts, while market year-to-date loss trimmed to -3.33%. This was largely due to gains in Transnational Corporation of Nigeria Plc (+1.08%) and Zenith Bank Plc (+0.41%).

The NSE Banking and Industrial Goods indices gained ca 0.56% and 0.04% respectively, while the NSE Oil and Gas and Consumer Goods indices fell ca 0.63% and 0.04% respectively, day-on-day.

Sterling Bank Plc led the volume chart with ca 51.83 million units, while United Bank for Africa Plc led the value chart with ca ₦129.78 million worth of trades.

Foreign Exchange

In the parallel market, the Naira appreciated against the U.S Dollar and Euro to ₦506.00/$1.00 and ₦595.00/€1.00 from ₦508.00/$1.00 and ₦598.00/€1.00 respectively, while remaining flat against the Pound Sterling at ₦705.00/₤1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦411.50/$1.00.

Commodities

Global crude oil prices fell for the third consecutive day, on rising concern of a drop in global crude oil demand following reports of increasing new cases of the Delta variant of the Coronavirus.  This comes despite reports of a drop of 0.879million barrels per day, of U.S crude inventories. Thus, Brent Crude oil price lost ca 1.46% day-on-day to settle at $71.35pb, while WTI lost ca 2.05% to $69.10pb, as at report time. Spot Gold lost ca 0.21% day-on-day to $1,810.40 per ounce as at report time.

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