FINANCIAL MARKETS TODAY – 25 August 2021

FIXED INCOME MARKET
Money Markets

Liquidity in the banking system slipped into a deficit to open at ca – ₦80.92 billion today, lower than yesterday’s opening balance of ca ₦113.41 billion. However, with no significant funding activity, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 13.00% and 13.33% from 15.50% and 15.75% respectively, the previous day.

Treasury Bills

The NTB secondary market maintained a quiet theme, with no significant change seen across the curve, as market players anticipated the results of the NTB primary market auction held today. The OMO secondary market traded with similar sentiments, with little to no trade executed across the yield curve. Consequently, average rates stayed flat across the NTB curve and the OMO curve, day-on-day.

Bonds

The FGN bonds secondary market endured a quiet theme buoyed by the paucity of trades. The 2036s witnessed the most traction at c. 12.50% levels. Light demand was also seen for maturities at the near end of the curve, particularly for the 2023s and 2024s, with only a handful of trades executed due to the dearth of offers. Overall, the average yield remained stable, day-to-day.

Eurobonds

Bullish trading sentiment was witnessed in the Eurobonds space today, with buy interest seen across the yield curve. Consequently, average yield dipped by ca 8bps, day-on-day.

Equities

The domestic bourse lost some of the previous day’s gains, with the Nigerian Stock Exchange All Share Index (NSE ASI) losing 0.03% day-on-day, to close at 39,450.00pts, while market year-to-date loss expanded to -2.04%. This was largely due to losses in Guaranty Trust Holding Company Plc (-0.71%) and Zenith Bank Plc (-0.41%).

The NSE Consumer Goods, Banking, and Oil & Gas indices fell ca 0.14%, 0.12% and 0.10% day-on-day, respectively. The NSE Industrial Goods index closed flat.

Sovereign Trust Insurance Plc led the volume chart with ca 48.38 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦155.24 million worth of trades.

Foreign Exchange

In the parallel market, the Naira remained stable against the U.S Dollar, Pound Sterling and Euro at ₦521.00/$1.00, ₦710.00/₤1.00 and ₦605.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦412.00/$1.00 from ₦411.00/$1.00.

Commodities

Global crude oil prices sustained a bullish trend, albeit at a slower pace as Mexico is set to resume crude production on August 30th following a fire on an oil platform. Thus, Brent Crude oil price gained ca 0.59% day-on-day to settle at $71.47pb, while WTI also gained ca 0.10% to $67.61pb, as at report time. Spot Gold fell ca 1.19% day-on-day to $1,786.90 per ounce as at report time.

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