FINANCIAL MARKETS TODAY – 03 September 2021

FIXED INCOME MARKET

Money Markets                                                                               

System liquidity declined today, opening with a balance of ca ₦393.10 billion, lower than previous day’s opening of ca ₦431.83 billion. The Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 13.00% and 13.50% from 4.33% and 4.83% respectively the previous day, as most banks had to fund for the FX retail auction that held today.

Treasury Bills                               

The NTB secondary market saw mixed to bullish sentiments, mild activity was witnessed on the July 2022 and August 2022 papers. Thus, average rate remained flat, 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.

Bonds  

The FGN bonds secondary market closed the week on a bullish note, interest was centered on the 2026, 2027, 2035, 2036 and 2050 maturities.  Thus, average yield fell by ca 8bps day-on-day.

Eurobonds

The Eurobonds secondary market saw a quiet session today, however some offers were witnessed on selected maturities. Thus, average yield rose by ca 1bp, day-on-day.

Equities

The Nigerian equities market closed the week in the green as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.02% day-on-day to close at 39,261.01pts, while market year-to-date loss reduced to -2.51%. This was largely supported by gains in GTCO Nigeria Plc (+1.27%) and Zenith Bank Plc (+0.21%)

The NSE Oil and Gas and Banking indices lost ca 0.12% and 0.01% respectively, while the NSE Consumer Goods and Industrial goods indices gained ca 0.13% and 0.11% respectively, day-on-day.

Transnational Corporation of Nigeria Plc led the volume chart with ca 20.53 million units, while MTN Nigeria Communications Plc led the value chart with ca ₦343.13 million worth of trades.

Foreign Exchange

In the parallel market, the Naira remained flat against the U.S Dollar at ₦530.00/$1.00, while depreciating against the Pound Sterling and Euro to ₦722.00/₤1.00 and ₦622.00/€1.00 from ₦720.00/₤1.00 and ₦620.00/€1.00, respectively, yesterday. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.50/$1.00 from ₦411.67/$1.00.

Commodities

Global crude oil prices rose today, on sustained optimism of reduced crude oil supply following reports that ca 1.7million barrels per day(mbpd) crude oil production remains shut in the Gulf of Mexico due to the negative impact of Hurricane Ida. This also comes as the Organization of Petroleum Exporting Countries (OPEC) stuck to planned 0.4mbpd gradual easing of production cut in its recently concluded meeting. Hence, Brent Crude oil price gained ca 0.31% day-on-day to settle at $73.28pb, while WTI also gained ca 0.19% to $70.12pb, as at report time. Spot Gold gained ca 0.60% day-on-day to $1,822.00 per ounce as at report time.

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