FINANCIAL MARKETS TODAY – 04 October 2021

FIXED INCOME MARKET
Money Markets  

Interbank system liquidity opened with a credit balance of ca ₦124.28 billion, significantly lower than Thursday’s opening balance of ca ₦437.69 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates reduced by 7% apiece to settle at 8.00% and 8.75% from 15.00% and 15.75% respectively, on Thursday.

Treasury Bills

The NTB secondary market started the month’s trading activities on a tepid note, with only a handful of trades executed across the curve. Despite the relatively calm session, the 29 September NTB paper witnessed the most traction from market players at ca 7.15% levels. Overall, the average rates remained stable at c. 5.13%.

Bonds

The FGN bonds secondary market started October with a mixed to bearish undertone. The 2035s, 2036s and, 2050s gathered the most attention, with deals executed at c. 12.90%, 13.10%, and 13.15% levels respectively. Overall, average yields rose c.6bps, day-on-day.

Eurobonds

The Eurobonds space was largely bearish, with selloffs activities seen across the yield curve. Overall, average yield rose by ca 13bps to 6.29%, day-on-day.

Equities

The domestic bourse maintained an optimistic drive into October, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.05% day-on-day to close at 40,243.05pts, while market year-to-date loss pared to -0.07%. This was largely due to renewed sentiments towards bellwether stocks such as Zenith Bank Plc (+0.21%) and Guaranty Trust Holding Company Plc (+0.18%).

The NSE Consumer Goods and Banking indices gained ca 0.05% and 0.01% respectively, while the NSE Oil & Gas and Industrial Goods indices lost ca 0.38% and 0.02% day-on-day.

Fidelity Bank Plc led the volume chart with ca 18.95 million units while Guaranty Trust Holding Company Plc led the value chart with ca ₦512.41 million worth of trades.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦413.55/$1.00 from ₦413.38/$1.00.

Commodities

Global crude oil prices rose today, influenced by recent events as OPEC and its allies meet to discuss supply policy which may determine whether a recent rally in prices amid supply shocks and recovery from the COVID-19 pandemic will be sustained. Thus, Brent Crude oil price gained ca 3.10% day-on-day to settle at $81.74pb, while WTI also rose ca 2.85% to $78.04pb, as at report time. Spot Gold gained ca 0.34% day-on-day to settle at $1,764.30 per ounce as at report time.

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