FINANCIAL MARKETS TODAY – 02 September 2021

FIXED INCOME MARKET

Money Markets

System liquidity reduced marginally today, opening with a balance of ca ₦431.83 billion, lower than previous day’s opening of ca ₦432.62 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 4.33% and 4.83% from 4.50% and 5.00% respectively, the previous day.

Treasury Bills

The NTB secondary market was slightly mixed, with demand seen on the August 2022 paper at 6.60% levels, while most offers were at sub 6.50. Thus, average rate dipped ca 3bps day-on-day as only a few trades were executed. The OMO secondary market was also very quiet, with little to no activity seen across the curve. Thus, average rate remained flat, day-on-day. Please see below, a summary of the result of the OMO auction conducted today.

Bonds

The FGN bonds secondary market witnessed a mixed to bullish session, Interest was centered on the 2036 and 2050 maturities at 12.40% and 12.73% levels, respectively.  Thus, average yield fell by ca 5bps day-on-day.

Eurobonds

The Eurobonds secondary market saw bullish sentiments today, with buy-side activity witnessed across the curve. Thus, average yield fell by ca 2bps, day-on-day.

Equities

The Nigerian equities market closed the day in the green as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.17% day-on-day to close at 39,252.19pts, while market year-to-date loss reduced to -2.53%. This was largely supported by gains in Zenith Bank Plc (+0.21%) and GTCO Nigeria Plc (+0.18%).

The NSE Oil and Gas and Consumer goods indices lost ca 1.22% and 0.19% respectively, while the NSE Industrial goods and Banking indices gained ca 0.44% and 0.19% respectively, day-on-day.

Access Bank Plc led both the volume and value charts with ca 51.07 million units, with ca ₦471.19 million worth of trades.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦530.00/$1.00, ₦720.00/₤1.00 and ₦620.00/€1.00 from ₦528.00/$1.00, ₦717.00/₤1.00 and ₦616.00/€1.00, respectively, yesterday. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.67/$1.00 from ₦411.50/$1.00.

Commodities

Global crude oil prices rose today, as the U.S Energy Information Administration (EIA) reported a drop in U.S crude inventories of ca 7.2million barrels per day. Hence, Brent Crude oil price gained ca 2.56% day-on-day to settle at $73.40pb, while WTI also gained ca 2.84% to $70.54pb, as at report time. Spot Gold lost ca 0.04% day-on-day to $1,815.30 per ounce as at report time.

Leave a comment

Your email address will not be published. Required fields are marked *