FINANCIAL MARKETS TODAY – 08 September 2021

FIXED INCOME MARKET
Money Markets 

System liquidity is expected to be relatively stable at c.N200bn, despite the Open Buy Back (OBB) and Overnight (ON) rates trending higher to settle at 8.83% and 9.33% from 7.00% and 7.25% respectively, the previous day, amid slight funding pressure.

Treasury Bills

The NTB secondary market sustained its quiet stance, as market players focused on the primary market auction (PMA) conducted today. However, offers were predominantly seen on July and August papers at 6.50% levels but little to no trade was executed. Thus, average rates remained unchanged day-on-day. Similarly, the OMO market saw offers majorly on the long end at 7.00% levels, but weak volumes were traded.

Bonds

Activity in the FGN bonds secondary market ended the day with a bearish theme. The maturities at the long end of the curve – 2035s, 2036s, 2049s and 2050s witnessed an uptick in offers, albeit very few trades were executed due to the scarcity of bids across the curve. Consequently, the average yield rose by ca 2bps, day-on-day.

Eurobonds

The Eurobonds space saw bearish sentiments, with sell-side activity seen across the yield curve. Consequently, average yield rose by ca 4bps, day-on-day.

Equities

The domestic bourse closed the day in the red today, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.12% day-on-day to close at 39,204.52pts while market year-to-date loss rose to -2.65%. This was largely due to losses in Guaranty Trust Holding Company Plc (-1.99%), Zenith Bank Plc (-0.83%), and Stanbic IBTC Holdings Plc (-0.51%).

The NSE Banking and Consumer Goods indices lost ca 0.32% and 0.08% while the NSE Oil & Gas index gained ca 0.55% day-on-day, respectively. The NSE Industrial Goods index closed flat.

FBN Holdings Plc led the volume chart with ca 86.01 million units while Access Bank Plc led the value chart with ca ₦671.34 million worth of trades.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦535.00/$1.00, ₦730.00/₤1.00 and ₦629.00/€1 from ₦532.00/$1.00, ₦727.00/₤1.00 and ₦626.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦411.50/$1.00 from ₦410.67/$1.00.

Commodities

Global crude oil prices rose today, on reports of U.S. Gulf of Mexico producers making slow progress on output, following a shut-down in operations due to Hurricane Ida. Thus, Brent Crude oil price gained ca 1.26% day-on-day to settle at $72.59pb, while WTI also rose ca 1.40% to $69.32pb, as at report time. Spot Gold lost ca 0.17% day-on-day to $1,795.40 per ounce as at report time.

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