FINANCIAL MARKETS TODAY – 16 September 2021

FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity opened with a deficit of ca ₦102.18 billion today, worse than previous day’s opening balance of ca ₦64.56billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 7.00% and 7.75% from 13.00% and 13.55% respectively, the previous day.

Treasury Bills                                                                   

The NTB secondary market was bullish today, as unmet demand at the Primary Market Auction (PMA) spilled into the secondary market. Average rate on the 1-year bill dipped by ca 48bps to trade at 6.80%.

Bonds  

The FGN bonds secondary market was also dominated by bullish sentiments today, aggressive demand was seen on the 2027, 2028, 2034, 2035, 2036 and 2050 maturities at 11.60%, 11.70%, 12.50%, 12.80%, 12.90%, and 13.00% respectively. Overall, average yields lost ca 50bps, day-on-day.

Eurobonds

The Eurobonds space was bearish today, with some offers seen on the mid-to-long dated maturities. Overall, average yield rose ca 4bp, day-on-day.

Equities

The Nigerian equities market closed the day in the red as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.15% day-on-day to close at 38,911.31pts, while market year-to-date loss expanded to -3.38%. This was largely supported by losses in Oando Plc (-1.52%) and Guaranty Trust Holding Company Plc (-0.55%).

The NSE Oil and Gas, Consumer Goods, Banking and Industrial Goods indices lost ca 0.57%, 0.36%, 0.28% and 0.14% respectively, day-on-day.

Access Bank Plc led both the volume and value charts with ca 24.78 million units traded at ca ₦230.36 worth of trades.

Foreign Exchange

In the parallel market, the Naira depreciated against the U.S Dollar, Pound Sterling and Euro to ₦565.00/$1.00, ₦765.00/₤1.00 and ₦650.00/€1.00 from ₦562.00/$1.00, ₦763.00/₤1.00 and ₦648.00/€1.00, respectively, yesterday. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦413.07/$1.00 from ₦412.06/$1.00.

Commodities

Global crude oil prices returned some of previous gains, as the International Energy Agency reported that supply lost from storms in the Gulf of Mexico would offset gains from the Organization of Petroleum Exporting Countries (OPEC), despite a larger than expected drop in U.S crude inventory by 6.4 million barrels (mb), vs market analysts’ expectation of a 3.5mb drop. Therefore, Brent Crude oil price lost ca 0.93% day-on-day to settle at $74.76b, while WTI also lost ca 1.17% to $71.79pb, as at report time. Spot Gold lost ca 2.25% day-on-day to settle at $1,754.70 per ounce as at report time.

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