FIXED INCOME MARKET
Money Markets
Banking system liquidity improved today, opening with a balance of ca ₦258.10 billion, better than the previous day’s opening of ca – ₦80.92 billion. As a result, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 10.00% and 10.00% from 13.00% and 13.33% respectively, the previous day.
Treasury Bills
The NTB secondary market was largely bearish today, with a plethora of offers on the newly issued 1-year NTB paper at c.6.60% levels, as market players engaged in sell-side activities, following the excess supply of bills at yesterday’s NTB auction. Thus, average rates rose c.12bps, day-on-day.
The CBN resumed OMO sales today after a brief hiatus (last auction was 15 July 2021), with a total of N60bn offered across 3 tenors.
Bonds
The FGN bonds secondary market traded with a mixed to bearish tone, with market sentiments largely influenced by CBN’s resumption of OMO sales and the oversupply at yesterday’s NTB auction (despite the decline in 1-yr stop rate). Improved offers were seen particularly on the 2036s and 2050s at c. 12.60% and 12.75% levels, respectively. Overall, average yields rose c.10bps, day-on-day.
Eurobonds
The Eurobonds space sustained its bullish stance today, with pockets of demand seen across the curve. Consequently, average yield lost ca 3bps, day-on-day.
Equities
The domestic bourse closed the day in positive territory, following buy interest in stocks such as Honeywell Flourmills Plc (+7.45%) and Access Bank Plc (+1.11%). Thus, the Nigerian Stock Exchange All Share Index (NSE ASI) gained ca 0.07% day-on-day to close at 39,477.18pts, while market year-to-date loss pared to -1.97%.
The NSE Oil & Gas and Banking indices gained ca 0.20% and 0.09% day-on-day, respectively. The NSE Consumer Goods and Industrial Goods indices closed flat.
Sovereign Trust Insurance Plc led the volume chart with ca 19.67 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦496.68 million worth of trades.
Foreign Exchange
In the parallel market, the Naira depreciated against the U.S Dollar to ₦522.00/$1.00 from ₦521.00/$1.00, while remaining stable against the Pound Sterling and the Euro at ₦712.00/₤1.00 and ₦605.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦410.88/$1.00 from ₦412.00/$1.00.
Commodities
Global crude oil prices declined today, due to the uncertainty around the strength of the economic recovery globally as more restrictions are imposed to curb the rising cases of the Delta variant of the Corona virus. Thus, Brent Crude oil price lost ca 1.09% day-on-day to settle at $71.46pb, while WTI also fell ca 1.18% to $67.54pb, as t report time. Spot Gold gained ca 0.40% day-on-day to $1,798.20 per ounce as at report time.
