FINANCIAL MARKETS TODAY – 08 October 2021

FIXED INCOME MARKET
Money Markets  

Interbank system liquidity opened with a credit balance of ca ₦22.67 billion, higher than yesterday’s deficit balance of ca ₦16.31 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended slightly higher to settle at 14.00% and 14.50% from 13.50% and 14.00% respectively, the previous day.

Treasury Bills

The NTB secondary market reflected a bearish theme to close the week. The August NTB papers witnessed the most traction at c.6.85% and 6.95% levels. Overall, average rates inched up ca 9bps day-on-day to 5.08%.

Bonds

The FGN bonds secondary market closed the week on a mixed to bearish note, as investors reacted to yesterday’s 2022 preliminary budget presentation by President Buhari. Notable interest was seen at the mid to long-end maturities, particularly on the 2028s, 2035s, 2036s, and 2050s, with bid margins at c.11.85%, 12.90%, 12.95% and 13.20%. Consequently, average yields gained ca 10bps, day-on-day to 11.73%.

Eurobonds

The Eurobonds space traded quietly today, with mild selloffs seen across the yield curve. Overall, the average yield gained ca 1bp to 6.50%, day-on-day.

Equities

The domestic bourse sustained its northward movement to close the week. The Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.10% day-on-day to close at 40,868.36pts, while year-to-date returns extended to 1.48%. This performance leaned heavily to bargain hunting in stocks such as Zenith Bank Plc (+1.45%) and Guaranty Trust Holding Company Plc (+0.70%).

The NSE Banking index gained ca 1.20% while the NSE Oil & Gas and Consumer Goods index lost ca 0.12% and 0.03% day-on-day, respectively. The NSE Industrial Goods index closed flat.

FBN Holdings Plc led both the volume and value charts with ca 154.68 million units traded at ca ₦1.54 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.30/$1.00 from ₦414.67/$1.00.

Commodities

Global crude oil prices remain on a positive trajectory, pushing towards a 4.2% gain for the week as some firms switch some high-priced gas to crude oil and on speculations that the U.S. government would release oil from its strategic reserves to stem the rally in oil prices. Thus, Brent Crude oil price gained ca 1.31% day-on-day to settle at $83.03pb, while WTI also gained ca 1.74% to $79.64pb, as at report time. Spot Gold lost ca 0.01% day-on-day to settle at $1,759.00 per ounce as at report time.

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