FINANCIAL MARKETS TODAY – 19 August 2021

FIXED INCOME MARKET

Money Markets

System liquidity improved slightly today, opening with a balance of ca ₦8.33 billion, higher than previous day’s opening of ca -₦7.60 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 17.67% and 18.33% from 17.50% and 17.75% respectively, the previous day.

Treasury Bills

The NTB secondary market sustained its quiet stance, with few offers seen on the July 2022 and August 2022 papers at sub 6.20% levels. Thus, average rate remained flat day-on-day.

Bonds

Mixed sentiments were witnessed in the FGN bonds secondary market today, following the PMA conducted yesterday. Demand was seen on the short-dated maturities, particularly the 2024 to 2026 maturities, while improved offers were seen on the 2035 to 2050 maturities. Overall, average yield rose ca 4bps, day-on-day.

Eurobonds

The Eurobonds secondary market was largely bearish today, as the nation’s finance minister confirmed the federal government’s plans to commence issuance of planned $6.2 billion Eurobond in September 2021. Sell-offs were seen across the yield curve, thus, average yield gained ca 9bps, day-on-day.

Equities

The Nigerian equities market closed the day in the green as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.32% day-on-day to close at 39,670.29pts, while market year-to-date loss reduced to -1.49%. This was largely supported by gains in MTN Nigeria Communications Plc (+2.56%) and Zenith Bank Plc (+0.21%). The NSE Consumer Goods, Oil and Gas and Banking indices lost ca 1.68%, 0.07% and 0.06%, respectively, while the NSE Industrial index gained ca 0.22% day-on-day. Courtville Business Solutions Plc led the volume chart with ca 34.83 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦543.79 million worth of trades.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦520.00/$1.00, ₦708.00/₤1.00 and ₦607.00/€1.00 from ₦515.00/$1.00, ₦706.00/₤1.00 and ₦605.00/€1.00 respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.67/$1.00 from ₦411.75/$1.00.

Commodities

Global crude oil prices fell today, to its lowest in 3 months  on sustained concern of a drop in global crude oil demand due to a surge in new cases of the Delta variant of the Coronavirus. Thus, Brent Crude oil price lost ca 2.40% day-on-day to settle at $66.56pb, while WTI also lost ca 2.70% to $63.71pb, as at report time. Spot Gold lost ca 0.14% day-on-day to $1,781.80 per ounce as at report time.

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