FINANCIAL MARKETS TODAY – 05 October 2021

FIXED INCOME MARKET
Money Markets  

Interbank system liquidity opened with a balance of ca ₦80.66 billion, lower than yesterday’s opening balance of ca ₦124.28 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates declined to settle at 6.17% and 6.83% from 8.00% and 8.75% respectively, the previous day.

Treasury Bills

The NTB secondary market witnessed a relatively active trading session, as local buy-side investors continue to cherry-pick the NTB papers with high yielding rates. Interest was observed on February, March, August, and September bills at ca 4.00%, 4.50%, 6.90% and 7.10%, respectively – although low offers ensured trades executed were few. Overall, average rates fell ca 4bps day-on-day to 4.95%, with most trades executed on the September papers.

Bonds

The FGN bonds secondary market traded with a mixed to bullish tone, with improved buying interest seen on the short tenors (2023s and 2024s) along with maturities at the belly of the curve (2035s and 2036s). Overall, average yields fell c.6bps day-on-day to 11.55%, largely due to the dip in 2036s.

Eurobonds

The Eurobonds space was largely bearish, evident in improved offers seen across the yield curve. Overall, the average yield rose by ca 9bps to 6.38%, day-on-day.

Equities

The domestic bourse witnessed a rebound in the first week of Q4’2021, with the market’s year-to-date returns positioned at ca.1.18%, after falling steadily from its peak in January 2021. The Nigerian Stock Exchange All Share Index (NSE ASI) gained 1.18% day-on-day, to close at 40,716.66pts with support from bellwether stocks such as Airtel Africa Plc (+6.29%), Access Bank Plc (+2.73%), Zenith Bank Plc (+1.70%), and Guaranty Trust Holding Company Plc (+1.42%), respectively.

The NSE Banking and Oil & Gas indices gained ca 2.50% and 0.80% while the NSE Consumer Goods index lost ca 0.44% day-on-day, respectively. The NSE Industrial Goods index closed flat.

Universal Insurance Plc led the volume chart with ca 105.11 million units while Guaranty Trust Holding Company Plc led the value chart with ca ₦712.39 million worth of trades.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦414.30/$1.00 from ₦413.55/$1.00.

Commodities

Global crude oil prices hit a three-year high today, after OPEC and its allies stuck to its planned output increase despite concerns that a fourth global wave of COVID-19 infections could hit the demand recovery. Thus, Brent Crude oil price gained ca 1.85% day-on-day to settle at $82.75pb, while WTI also rose ca 1.93% to $79.11pb, as at report time. Spot Gold fell ca 0.40% day-on-day to settle at $1,760.50 per ounce as at report time.

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