FINANCIAL MARKETS TODAY – 23 August 2021

FIXED INCOME MARKET
Money Markets

Liquidity in the banking system slipped further into a deficit to open at ca – ₦211.03 billion, lower than Friday’s opening of ca ₦- ₦72.32 billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 17.50% and 17.50% from 23.33% and 23.83% respectively, the previous day.

Treasury Bills

The NTB secondary market reflected a quiet theme at the start of the week, with a handful of trades executed on the August NTB paper at ca. 6.40% levels. Thus, average rates remained stable day-on-day. Similarly, the OMO market remained quiet, with scanty offers. Consequently, average rate stayed flat, day-on-day.

Bonds

The FGN bonds secondary market opened the week on a muted note, albeit with a bullish undertone. The 2049s and 2050s saw the most interest at c.12.55% and 12.85% levels, respectively. However, the number of trades executed was sparse due to the dearth of offers seen across the curve. Overall, the average yield dipped ca 7 bps, day-on-day.

Eurobonds

Mixed sentiments defined the Eurobonds secondary market today, with minimal activities seen across the curve. Overall, average yield remained stable, day-on-day.

Equities

The domestic bourse started the week with a bearish performance, due to losses recorded in stocks such as Transnational Corporation of Nigeria Plc (-1.03%) and Guaranty Trust Holding Company Plc (-0.71%), respectively. The NSE All Share Index lost c.0.12% day-on-day to close at 39,434.69pts while market year-to-date loss expanded to -2.08%.

The NSE Industrial Goods, Oil & Gas, Consumer Goods, and Banking indices lost ca 0.32%, 0.14%, 0.12% and 0.07%, respectively, day-on-day.

Chams Plc led the volume chart with ca 47.95 million units, while Guaranty Trust Holding Company Plc led the value chart with ca ₦586.12 million worth of trades.

Foreign Exchange

In the parallel market, the greenback 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 ₦604.00/€1.00 from ₦606.00/€1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.83/$1.00 from ₦411.67/$1.00.

Commodities

Global crude oil prices reversed the bearish trend, with more than ca 4% gain attained in price recovery, driven by a weaker dollar. Although, concerns about demand recovery remain due to the rising cases of the Delta Coronavirus variant. Thus, Brent Crude oil price gained ca 4.99% day-on-day to settle at $68.43pb, while WTI also gained ca 5.18% to $65.36pb, as at report time. Spot Gold rose ca 1.26% day-on-day to $1,805.40 per ounce as at report time.

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