FINANCIAL MARKETS TODAY – 17 September 2021

FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity improved significantly, opening with a balance of ca ₦316.19 billion today (supported by bond coupon inflows), better than previous day’s opening deficit of ca ₦102.18billion. However, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 16.50% and 17.75% from 7.00% and 7.75% respectively, the previous day, this is due to the Retail FX auction that took place today.

Treasury Bills    

The NTB secondary market was quiet today, albeit with a bullish undertone, withmild demand seen on the September 2022 paper at 6.90% levels. Offers were significantly lower, thereby ensuring only few trades executed. Consequently, Average rate remained unchanged day-on-day. 

Bonds  

The FGN bonds secondary market ended the week with bullish sentiments, following the inflow of ca ₦77 billion for bond coupon payment. Demand was noted on the 2027, 2036, 2049 and 2050 maturities at 11.40%, 12.60%, 12.70%, and 12.90% respectively. Overall, average yields fell by ca 8bps, day-on-day.

Eurobonds

The Eurobonds space was bearish today, with some offers seen at the mid to long-end of the yield curve. Overall, average yield rose ca 2bps, day-on-day.

Equities

The Nigerian equities market closed the week with positive performance as the Nigerian Stock Exchange All Share Index (NSE ASI) gained  0.08% day-on-day to close at 38,943.87pts, while market year-to-date loss reduced to -3.29%. This was largely supported by gains in Guaranty Trust Holding Company Plc (+3.51%) and Zenith Bank Plc (+0.63%).

 The NSE Oil and Gas and Consumer Goods indices gained ca 0.32% and 0.04% respectively, while the NSE Banking and Industrial Goods indices lost ca 0.34%, and 0.13% respectively, day-on-day.

Universal Insurance Plc led the volume chart with ca 19.08 million units while Flour Mills of Nigeria Plc led the value chart with ca ₦266.45 million worth of trades.

Foreign Exchange

In the parallel market, the Naira remained flat against the U.S Dollar, Pound Sterling and Euro at ₦570.00/$1.00, ₦770.00/₤1.00 and ₦655.00/€1.00, respectively. FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦412.88/$1.00 from ₦413.07/$1.00.

Commodities

Global crude oil prices declined slightly today, as U.S, the world’s largest crude oil producer, gradually began production after the negative impact of hurricane Ida and storm Nicholas. Therefore, Brent Crude oil price lost ca 0.25% day-on-day to settle at $75.49b, while WTI also lost ca 0.41% to $72.31pb, as at report time. Spot Gold gained ca 0.08% day-on-day to settle at $1,758.10 per ounce as at report time.

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