FINANCIAL MARKETS TODAY – 31 August 2021

FIXED INCOME MARKET

Money Markets

System liquidity opened with a balance of ca ₦237.92 billion, as OMO maturities of ₦57.00 billion impacted the system. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 6.00% and 6.50% from 6.50% and 7.17% respectively, the previous day.

Treasury Bills

The NTB secondary market saw another subdued trading session today, with offers seen on the July and August 2022 papers at 6.30% and 6.65% levels respectively. Thus, average rates reduced by ca 3bps day-on-day. The OMO secondary market was also very quiet, with little or no activity seen across the curve. Thus, average rate remained flat, day-on-day.

Bonds

The FGN bonds secondary market closed the month on a muted note, as investors focused on month-end book keeping. However, interest was seen on the 2036 and 2050 maturities at 12.45% and 12.76% levels, respectively. Overall, average yield was unchanged day-on-day.

Eurobonds

Bullish sentiments dominated the Eurobonds space today, with buy-side activity witnessed across the curve. Thus, average yield fell by ca 13bps, day-on-day.

Equities

The Nigerian Equities Market sustained its negative performance, with the Nigerian Stock Exchange All Share Index (NSE ASI) losing 0.27% day-on-day, to close at 39,219.61pts, while market year-to-date loss expanded to -2.61%. This was largely due to losses in Nigerian Breweries Plc (-9.93%), Zenith Bank Plc (-1.03%), and GTCO Nigeria Plc (-0.55%).

The NSE Consumer goods, Oil and Gas and Banking indices lost ca 1.94%, 0.41% and 0.39% respectively, while the NSE Industrial goods index remained flat day-on-day.

Transnational Corporation of Nigeria Plc led the volume chart with ca 111.07 million units, while Zenith Bank Plc led the value chart with ca ₦243.55 million worth of trades.

Foreign Exchange

In the parallel market, the Naira appreciated against the U.S Dollar and Euro to ₦526.00/$1.00 and ₦612.00/€1.00 from ₦527.00/$1.00 and ₦616.00/€1.00 respectively, while remaining unchanged against the Pound Sterling at ₦715.00/₤1.00, day-on-day. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.08/$1.00 from ₦411.63/$1.00.

Commodities

Global crude oil prices declined today, on reports that the United States called for an additional boost in production volume following the conclusion of the Organization of Petroleum Exporting Countries (OPEC) meeting scheduled to hold on Wednesday 01 September 2021. Hence, Brent Crude oil price lost ca 0.35% day-on-day to settle at $73.15pb, while WTI also lost ca 0.29% to $69.01pb, as at report time. Spot Gold lost ca 0.22% day-on-day to $1,808.20 per ounce as at report time.

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