FINANCIAL MARKETS TODAY – 07 September 2021

FIXED INCOME MARKET
Money Markets  

Liquidity in the banking system improved today (buoyed by OMO maturities of ₦50bn), opening with a balance of ca ₦212.74 billion, higher than the previous day’s opening of ca ₦169.91 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 7.00% and 7.25% from 8.00% and 8.50% respectively, the previous day.

Treasury Bills

The NTB secondary market traded on a quiet note, as players stayed cautious ahead of tomorrow’s NTB Primary Market Auction (PMA). There was little to no activity seen across the curve, due to the wide bid/ask spreads at the long end of the curve. Activity in the OMO market was subdued today as offers remain scarce due to the paucity of supply. Thus, average rates remained stable day-on-day across the NTB and OMO curve.

Bonds

Trading in the FGN bonds market was mixed to slightly bearish today, with improved offers observed on the 2028s, 2036s, and 2050s at c.11.25%, 12.30%, and 12.70% levels, respectively. Overall, the average yield rose ca 4 bps, day-on-day.

Eurobonds

Bearish trading sentiment was witnessed in the Eurobonds space today, with sell offs seen across the yield curve. Consequently, average yield rose by ca 2bps, day-on-day.

Equities

The domestic bourse traded flat today, with the Nigerian Stock Exchange All Share Index (NSE ASI) settling at 39,251.29pts, while market year-to-date loss remained unchanged at -2.53%. This was largely due to losses in Guaranty Trust Holding Company Plc (-0.90%) and Zenith Bank Plc (-0.21%).

The NSE Oil & Gas and Consumer Goods indices gained ca 1.00% and 0.52% while the NSE Banking index lost ca 0.31% day-on-day, respectively. The NSE Industrial Goods index closed flat.

FBN Holdings Plc led the volume chart with ca 92.29 million units while Access Bank Plc led the value chart with ca ₦711.91 million worth of trades.

Foreign Exchange

In the parallel market, the Naira remained stable against the U.S Dollar and Euro at ₦532.00/$1.00 and ₦625.00/€1.00 respectively, while depreciating against the Pound Sterling to ₦725.00/₤1.00 from ₦723.00/₤1.00. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦410.67/$1.00 from ₦411.13/$1.00.

Commodities

Global crude oil prices declined today, as reports of Saudi Arabia’s sharp cuts in crude contract prices for Asia dampened investors’ optimism on the prospect of a quick recovery for crude oil. Thus, Brent Crude oil price lost ca 0.91% day-on-day to settle at $71.56pb, while WTI also fell ca 1.73% to $68.09pb, as at report time. Spot Gold lost ca 1.91% day-on-day to $1,798.70 per ounce as at report time.

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