FINANCIAL MARKETS TODAY – 11 October 2021

FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity opened with a balance of ca ₦91.98 billion, higher than Friday’s opening balance of ca ₦22.67 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended slightly lower to settle at 10.00% and 10.67% from 14.00% and 14.50% respectively, the previous day.

Treasury Bills                                                                   

The NTB secondary market was slightly bullish today, as investors took positions ahead of the Primary Market Auction (PMA) to be conducted on Wednesday. Demand was seen on the June 2022, August 2022 and September 2022 papers around 6.50%, 6.80% and 6.85% levels respectively. Overall, average rates dipped by ca 5bps day-on-day to 5.07%. Likewise, the OMO space also witnessed demand, particularly on the February 2022 to April 2022 papers, thus average rate lost ca 7bps day-on-day.

Bonds  

The FGN bonds secondary was relatively quiet today. Some interest was witnessed on the 2036 and 2050 maturities. However, bids and offer were quite far apart. Consequently, average yield remained unchanged to start the week at 11.35%.

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 opened the week with negative performance as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.38% day-on-day to close at 40,714.22pts, while year-to-date returns reduced to 1.10%. This performance was largely supported by sell-offs in Nigerian Breweries Plc (-6.06%), BUA Cement Plc (-2.50%) and Guaranty Trust Holding Company Plc (-2.10%).

The NSE Banking index gained ca 0.75%,  the NSE Consumer Goods and Industrial Goods indices lost ca 1.00% and 0.57% respectively, while the NSE Oil and Gas index closed flat, day-on-day.

First Bank of Nigeria  Holdings Plc led the volume chart with ca 24.15 million units while BUA Cement Plc led the value chart with ca ₦359.35 million worth of trades.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦414.40/$1.00 from ₦414.30/$1.00.

Commodities

Global crude oil prices rose further today, with U.S oil trading at its highest in 7 years. This comes off the back of increased demand of crude oil due to sustained re-opening of economic activities in more countries. Thus, Brent Crude oil price gained ca 2.17% day-on-day to settle at $84.18pb, while WTI also gained ca 2.77% to $81.54pb, as at report time. Spot Gold gained ca 0.02% day-on-day to settle at $1,757.80 per ounce as at report time.

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