FINANCIAL MARKETS TODAY – 06 September 2021

FIXED INCOME MARKET
Money Markets  

System Liquidity opened the first trading day of the week with a balance of ca ₦169.91 billion, lower than the Friday’s opening of ca ₦393.10 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 8.00% and 8.50% from 13.00% and 13.50% respectively, the previous day.

Treasury Bills

The NTB secondary market started the week on a quiet note, as market players remain cautious ahead of the next Primary Market Auction(PMA) scheduled for Wednesday. Trading activities were skewed to the July and August 2022 papers at c.6.60% levels. Overall, average rates remained stable, day-on-day. The OMO secondary market remained largely quiet with yields staying flat across the curve.

Bonds

Trading in the FGN bonds market was mixed to slightly bullish today, with few trades executed on the 2036s and 2050s at 12.25% and 12.65% levels, respectively. Overall, average yield was unchanged day-on-day.

Eurobonds

The Eurobonds space traded quietly today, with minimal activities seen across the curve. Overall, average yield remained relatively stable, day-on-day.

Equities

The domestic bourse started the week with a bearish performance, due to selloffs in Flourmills Nigeria Plc (-4.17%), United Bank for Africa Plc (-1.94%), and Stanbic IBTC Holdings Plc (-1.38%). The NSE All Share Index lost ca 0.02% day-on-day to close at 39,252.98pts while market year-to-date loss extended to -2.53%.

The NSE Consumer goods index lost ca 0.41% while the NSE Banking, Oil & Gas and Industrial Goods indices gained ca 0.48%, 0.32%, and 0.03% respectively, day-on-day.

Access Bank Plc led both the volume and value charts with ca 30.52 million units traded at ca ₦282.14 million.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦532.00/$1.00, ₦723.00/₤1.00 and ₦625.00/€1 from ₦530.00/$1.00, ₦722.00/₤1.00 and ₦622.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦411.13/$1.00 from ₦411.50/$1.00.

Commodities

Global crude oil prices remained volatile today, following reports of a slow recovery for the U.S. Gulf Coast export and damage to its fuel depots escalating concerns about oil demand recovery.  Hence, Brent Crude oil price lost ca 0.62% day-on-day to settle at $72.16pb, while WTI also fell ca 0.58% to $68.89pb, as at report time. Spot Gold lost ca 0.49% day-on-day to $1,824.80 per ounce as at report time.

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