FINANCIAL MARKETS TODAY – 16 August 2021

FIXED INCOME MARKET

Money Markets

System liquidity improved slightly today, opening with a balance of ca ₦14.05 billion, better than the Friday’s opening of ca ₦11.58 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 17.00% and 17.50% from 16.75% and 17.25% respectively, on Friday.

Treasury Bills

The NTB secondary market opened the week on a muted note, as traded volumes were very low. Most trades were executed on the July 2022 and August 2022 papers at sub 6.50% and 6.55% respectively. Overall, average yield gained ca 5bps day-on-day. The OMO secondary market was very quiet, as the dearth of supply lingered. Thus, average rates remained flat, day-on-day.

Bonds

Activity in the FGN bonds secondary market was subdued today, with sparse trades executed across the board. Some demand was seen on the 2035 and 2036 maturities at 12.60% levels while the 2050s saw offers at c.12.85%. Overall, average yield dipped by 4bps, day-on-day.

Eurobonds

Bearish sentiments dominated the Eurobonds space today, with sell-side activity witnessed across the curve. Thus, average yield gained ca 3bps, day-on-day.

Equities

The domestic bourse lost some of last week’s gains to close the first day of the week in the red, as the Nigerian Stock Exchange All Share Index (NSE ASI) fell 0.04% day-on-day to close at 39,508.41pts, while market year-to-date loss expanded to -1.89%. This was largely due to losses in United Bank for Africa Plc (-0.66%) and Zenith Bank Plc (-0.61%).

The NSE Consumer Goods Index gained ca 0.02%, while the NSE Banking, Oil and Gas and Industrial Goods indices lost ca 0.65%, 0.27% and 0.09% day-on-day, respectively.

eTranzact Plc led the volume chart with ca 16.19 million units, while Nestle Nigeria Plc led the value chart with ca ₦491.95 million worth of trades.

Foreign Exchange

In the parallel market, the Naira remained stable against the U.S Dollar and Euro at ₦515.00/$1.00 and ₦600.00/€1.00 respectively, while depreciating against the Pound Sterling to ₦705.00/₤1.00 from ₦703.00/₤1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.67/$1.00 from ₦411.80/$1.00.

Commodities

Global crude oil prices declined today, on reports of stalled crude oil demand recovery, due to increasing new cases of the Delta variant of the Coronavirus, around the world. Thus, Brent Crude oil price lost ca 2.24% day-on-day to settle at $69.01pb, while WTI fell ca 2.64% to $66.62pb, as at report time. Spot Gold gained ca 0.61% day-on-day to $1,789.10 per ounce as at report time.

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