FINANCIAL MARKETS TODAY – 09 September 2021

FIXED INCOME MARKET
Money Markets 

Banking system liquidity improved slightly today, opening with a deficit of ca -₦13.78 billion today, better than the previous day’s opening of ca -₦92.05 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 12.50% and 13.00% from 8.83% and 9.33% respectively, the previous day.

Treasury Bills

The NTB secondary market traded on a bearish note today, with most of the activity skewed to the July-September NTB papers at c. 6.85% and 7.00% levels, as market players reacted to the 40bps uptick in 1-year stop rate at yesterday’s NTB auction. Consequently, the average yield rose by 25bps across the NTB curve.

Bonds

The FGN bonds secondary market was largely dominated by bearish sentiments, amid a lack of clarity on rate direction following the surprise hike in 1-year NTB paper stop rate at yesterday’s auction. Improved offers were seen on the 2036s and 2050s maturity at 12.65% and 13.00% levels respectively, but trades executed remained scanty due to lack of bids across the curve. Overall, average yield rose by ca 20bps, day-on-day.

Eurobonds

Mixed trading sentiments were witnessed in the Eurobonds space today, with minimal activities observed across the yield curve. Consequently, average yield rose by ca 1bp, day-on-day.

Equities

The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NSE ASI) marginally lost 0.01% day-on-day, to close at 39,201.33pts, while market year-to-date return receded to -2.66%. This performance leaned heavily to profit taking activities in Zenith Bank Plc (-0.83%), Access Bank Plc (-0.53%), and Stanbic IBTC Holdings Plc (-0.51%), respectively.

The NSE Oil & Gas, Consumer Goods and Banking indices gained ca 0.55%, 0.14% and 0.03% respectively, while the Industrial Goods index lost ca 0.02% day-on-day.

FBN Holdings Plc led both the volume and value charts with ca 97.73 million units traded at ca ₦729.64 million.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦540.00/$1.00, ₦740.00/₤1.00 and ₦630.00/€1 from ₦535.00/$1.00, ₦730.00/₤1.00 and ₦629.00/€1.00, respectively. 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, despite investors’ concerns about the latest wave of the Coronavirus – Delta variant which remains a threat to crude demand recovery. Thus, Brent Crude oil price gained ca 0.26% day-on-day to settle at $72.78pb, while WTI also rose ca 0.36% to $69.55pb, as at report time. Spot Gold lost ca 0.04% day-on-day to $1,792.70 per ounce as at report time.

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