FINANCIAL MARKETS TODAY – 22 September 2021

FIXED INCOME MARKET
Money Markets

Interbank system liquidity slipped further into a deficit to open at ca – ₦77.99 billion, lower than the previous day’s opening of ca – ₦60.25 billion. Consequently, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 17.00% and 18.00% from 15.50% and 16.25% respectively, the previous day.

Treasury Bills

Trading activity in the NTB secondary market was mixed to slightly bullish today, with pockets of trades executed across the curve. Overall, average yield fell by ca 2bps, day-on-day.

Bonds

The FGN bonds secondary market endured a quiet theme, as market players shifted focus to the Primary Market Auction (PMA) auction with a handful of trades executed across the 2036s and 2050s at c.12.60% and 12.80% levels, respectively. At the PMA, stop rates remained stable for all the maturities offered, save for the 2050 maturity which inched up by ca 20bps between auctions. The DMO sold ca ₦277.05 billion across the three maturities vs ₦150 billion offered at the auction.

Eurobonds

The Eurobonds secondary market was largely bearish today, as an aftermath effect of recent funds raised by the Debt Management Office (DMO) through a Eurobond offering. The sell-off activity was seen across the yield curve, thus, the average yield gained ca 13bps, day-on-day.

Equities

With losses recorded in stocks such as Zenith Bank Plc (-0.22%) and Guaranty Trust Holding Company Plc (-0.18%), the domestic bourse maintained its bearish stance for the third consecutive day. The Nigerian Stock Exchange All Share Index (NSE ASI) was down 5bps day-on-day to close at 38,852.69pts, while market year-to-date loss expanded to -3.52%.

The NSE Oil & Gas and Industrial Goods indices gained ca 0.50% and 0.01%, while the NSE Banking and Consumer Goods indices fell ca 0.83% and 0.02% day-on-day, respectively.

Universal Insurance Plc led the volume chart with ca 19.04 million units while Guaranty Trust Holding Company Plc led the value chart with ca ₦271.26 million worth of trades.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦413.18/$1.00 from ₦413.28/$1.00.

Commodities

Global crude oil prices rose today, as industry data showed a further drop in the U.S. crude inventories in the wake of two hurricanes. The American Petroleum Institute (API) reported a drop of 6.1 million barrels (mb) of U.S crude stockpiles, following a 5.4mb in the previous week and higher than market analysts’ expectation of a 2.4mb decline. Therefore, Brent Crude oil price gained ca 1.94% day-on-day to settle at $75.80pb, while WTI also rose ca 2.00% to $71.90pb, as at report time. Spot Gold gained ca 0.07% day-on-day to settle at $1,779.20 per ounce as at report time.

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