FINANCIAL MARKETS TODAY – 20 August 2021

FIXED INCOME MARKET

Money Markets

System liquidity declined today, opening in a deficit of ca – ₦72.32 billion, lower than previous day’s opening of ca ₦8.33 billion. As a result, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 23.33% and 23.83% from 17.67% and 18.33% respectively, the previous day.

Treasury Bills

The NTB secondary market sustained its quiet stance, albeit with a bearish undertone, as offers were witnessed mostly on short dated maturities. This is because some players sought to create liquidity amid the FX and bond auction debits that took place today. There was also mild interest on Jul/Aug maturities but trades executed were few and far between. Thus, average rate remained flat day-on-day.

Bonds

The FGN bonds secondary market closed the week on a muted note, with soft demand seen on the 2036 maturity at 12.68% levels. Overall, average yield fell by ca 3bps, day-on-day.

Eurobonds

The Eurobonds secondary market was bullish today, with demand seen at the mid to long-end of the yield curve. Thus, average yield reduced by ca 2bps, day-on-day.

Equities

The Nigerian equities market ended the last trading day of the week with negative performance as the Nigerian Stock Exchange All Share Index (NSE ASI) shed 0.47% day-on-day to close at 39,483.08pts, while market year-to-date loss expanded to -1.96%. This was largely due to losses in Transnational Corporation of Nigeria Plc (-1.02%) and United Bank for Africa Plc (-0.66%).

The NSE Consumer Goods, Banking, Oil and Gas and Industrial Goods indices lost ca 0.25%, 0.18%, 0.16% and 0.08%, respectively, day-on-day.

Honeywell Flour Mills Plc led the volume chart with ca 57.50 million units, while GTCO Nigeria Plc led the value chart with ca ₦1.19 billion worth of trades.

Foreign Exchange

In the parallel market, the Naira remained stable against the U.S Dollar and Pound Sterling at ₦520.00/$1.00 and ₦708.00/₤1.00 respectively, while appreciating against the Euro to ₦606.00/€1.00 from ₦607.00/€1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦411.67/$1.00.

Commodities

Global crude oil prices sustained its downward trend, as more countries impose movement restrictions due to rising cases of the Delta variant of the Coronavirus. Thus, Brent Crude oil price lost ca 0.50% day-on-day to settle at $66.10pb, while WTI also lost ca 0.49% to $63.17pb, as at report time. Spot Gold lost ca 0.01% day-on-day to $1,783.40 per ounce as at report time.

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