FINANCIAL MARKETS TODAY – 09 August 2021

FIXED INCOME MARKET
Money Markets

Liquidity in the banking system opened the first trading day of the week, with a balance of ca ₦26.27 billion, lower than Friday’s opening of ca ₦364.78 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 13.00% and 13.75% from 20.00% and 20.50% respectively, the previous day.

Treasury Bills

The NTB secondary market started the week on a bullish note today with demand skewed to the June and July NTB papers at ca 7.50%, as market players sought to take position ahead of the primary auction scheduled this week. Overall, average rates declined by 12bps across the NTB curve, day-on-day. Similarly, the OMO secondary market witnessed buying interests across the curve. Consequently, average rates dipped ca 8bps, day-on-day.

Bonds

The bond market started the week on a positive note with improved bids observed predominantly on the 27s, 28s, 25s, 36s, 49s, and 50s, albeit with very few executed trades. Thus, average yields dipped ca 9bps day-on-day.

Eurobonds

Bearish sentiment prevailed in the Eurobonds secondary market today, with selloffs seen across the yield curve. Consequently, average yield rose by ca 4bps, day-on-day.

Equities

The domestic bourse started the week with a bearish performance, due to selloffs in Dangote Cement Plc (-3.26%), Flourmills Nigeria Plc (-2.30%), and Zenith Bank Plc (-0.41%). The NSE All Share Index lost ca 0.63% day-on-day to close at 38,567.26pts while market year-to-date loss extended to -4.23%.

The NSE Oil & Gas and Consumer Goods indices gained ca 1.01% and 0.03%, while the NSE Industrial Goods and Banking indices fell ca 1.76% and 0.05% day-on-day, respectively.

Wema Bank Plc led the volume chart with ca 25.77 million units, while Ellah Lakes Plc led the value chart with ca ₦106.36 million worth of trades.

Foreign Exchange

In the parallel market, the Naira remained stable against the U.S Dollar and Pound Sterling at ₦510.00/$1.00 and ₦705.00/₤1.00 respectively, while appreciating against the Euro to ₦596.00/€1.00 from ₦598.00/€1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained flat at ₦411.50/$1.00.

Commodities

Global crude oil prices continue to decline, building on last week’s steep losses as investor’s optimism on demand recovery dampen due to the uncertainty and upsurge in coronavirus cases across the world. Thus, Brent Crude oil price lost ca 3.48% day-on-day to settle at $68.24pb, while WTI fell ca 3.78% to $65.69pb, as at report time. Spot Gold lost ca 1.32% day-on-day to $1,740.00 per ounce as at report time.

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