FINANCIAL MARKETS TODAY – 27 September 2021

FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity opened in a deficit ca ₦72.26 billion, better than Friday’s opening deficit of ca ₦211.01 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 15.33% and 16.00% from 16.00% and 17.25% respectively, the previous day.

Treasury Bills                               

The NTB secondary market opened the week on a muted note, with few offers seen on the July 2022 to September 2022 papers at 6.90% levels, but bids remained scarce.  Thus, average rates were unchanged day-on-day.  

Bonds  

The FGN bonds secondary market traded on a quiet note, despite inflows of ca ₦54 billion from bonds coupon payment. Offers were seen on the 2036 and 2050 maturities at 12.70% and 12.95% respectively. Overall, the average yield stayed flat day-on-day.

 Eurobonds

Bearish sentiments dominated the Eurobonds space today, with sell offs seen across the yield curve. Overall, average yield rose by ca 9bps, day-on-day.

Equities

The domestic bourse opened the week with negative sentiments, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.25% day-on-day to close at 38,864.33pts, while market year-to-date loss expanded to -3.49%. This was largely due to losses in stocks such as Guaranteed Trust Holding Company Plc (-0.54%),  and Zenith Bank Plc (-0.21%).

The NSE Oil and Gas, Banking, Consumer Goods indices gained ca 1.20%, 0.40%, and 0.24% respectively, while the NSE Industrial Goods index lost ca 1.09% day-on-day.

Sovereign Trust Insurance Plc led the volume chart with ca 19.08 million units while MTN Nigeria Communications Plc led the value chart with ca ₦465.05 million worth of trades.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.83/$1.00 from ₦414.90/$1.00.

Commodities

Global crude oil prices rose today on sustained optimism of an increase in global crude oil demand, as more countries ease up on Coronavirus restrictions. Thus, Brent Crude oil price gained ca 1.92% day-on-day to settle at $79.58pb, while WTI also rose ca 2.03% to $75.48pb, as at report time. Spot Gold gained ca 0.07% day-on-day to settle at $1,752.80 per ounce as at report time.

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