FINANCIAL MARKETS TODAY – 06 August 2021

FIXED INCOME MARKET

Money Markets

System Liquidity improved today, opening with a balance of ca ₦364.78 billion, higher than the previous day’s opening of ca ₦107.27 billion. The Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 20.00% and 20.50% from 5.25% and 5.50% respectively, the previous day.

Treasury Bills

The NTB secondary market saw subdued activities, with some demand seen on the June and July 2022 papers at 7.60% levels. Thus, average rate fell by ca 5bps, day-on-day. Similarly, the OMO market remained quiet, with scanty offers. Consequently, average rate stayed flat, day-on-day.

Bonds

Bullish sentiment was witnessed in the FGN bonds secondary market, with demand seen on the 2027, 2035, 2036 and 2050 maturities at 12.25%, 13.10%, 13.12% and 13.25% levels respectively. Consequently, average yield declined by ca 6bps, day-on-day.

Eurobonds

The Eurobonds space traded quietly today, with mild sell-offs seen on selected maturities. Average yield gained ca 1bp, day-on-day.

Equities

The Nigerian Equities Market closed the week on a positive note, with the Nigerian Stock Exchange All Share Index (NSE ASI) gaining 0.02% day-on-day, to close at 38,811.11pts, while market year-to-date loss trimmed to -3.62%. This was largely due to gains in Oando Plc (+4.13%) and Transnational Corporation of Nigeria Plc (+2.15%).

The NSE Oil and Gas index gained  ca 0.95%, the NSE Banking index lost ca 0.05%, while the NSE Consumer Goods and Industrial Goods indices remained flat, day-on-day.

First Bank of Nigeria Plc led the volume chart with ca 27.28 million units, while GTCO Nigeria Plc led the value chart with ca ₦404.03 million worth of trades.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar to ₦510.00/$1.00 from ₦508.00/$1.00 , while remaining flat against the Euro and Pound Sterling at ₦598.00/€1.00 and ₦705.00/₤1.00 respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.50/$1.00 from ₦411.25/$1.00.

Commodities

Global crude oil prices continued its downward trajectory today, on sustained concern of a drop in global crude oil demand on expectation that more countries place travel restrictions due to increasing new cases of the Delta variant of the Coronavirus. Thus, Brent Crude oil price lost ca 0.03% day-on-day to settle at $71.23pb, while WTI lost ca 0.14% to $68.99pb, as at report time. Spot Gold lost ca 2.47% day-on-day to $1,764.00 per ounce as at report time.

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