FINANCIAL MARKETS TODAY – 13 October 2021

FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity opened with a balance of ca ₦75.14 billion, lower than the previous day’s opening balance of ca ₦190.61 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 7.50% and 8.00% from 5.00% and 5.50% respectively, the previous day.

Treasury Bills                                                                   

The NTB secondary market had a subdued trading session today, as investors focused on the Primary Market Auction (PMA). However, few trades were executed on the January 2022 papers around 3.75%. Overall, average rate dipped ca 3bps to 5.07%.

Bonds  

The FGN bonds secondary was also relatively quiet today. However, mild demand was seen on the 2036 and 2050 maturities at 12.85% and 13.15% respectively. Overall, average yield dipped ca 5bps day-on-day at 11.35%. The Debt Management Office (DMO) released the FGN bond offer circular for October 2021, with total amount on offer of ca ₦150billion, across the January 2026, April 2037 and March 2050 maturities.

Eurobonds

The Eurobonds space sustained its quiet stance today. Overall, the average yield remained flat day-on-day at 6.52%.

Equities

The domestic bourse sustained its positive performance as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.38% day-on-day to close at 41,051.19pts, while year-to-date returns rose to 1.94%. This performance was largely supported by gains in First Bank of Nigeria  Holdings Plc (+2.82%) and Guaranty Trust Holding Company Plc (+1.06%).

The NSE Banking, Oil and Gas, Consumer Goods and Industrial Goods indices gained ca 1.40%, 0.51%, 0.35% and 0.15% respectively, day-on-day.

First Bank of Nigeria  Holdings Plc led both the volume and value charts with ca 148.35 million units traded at ca ₦1.67 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.10/$1.00 from ₦414.30/$1.00.

Commodities

Global crude oil prices dropped today, on increasing concern that rising coal and natural gas prices in large economies like China, India and Europe could stoke inflation, reduce global growth and hence global crude oil demand. Thus, Brent Crude oil price lost ca 0.38% day-on-day to settle at US$83.07pb, while WTI also lost ca 0.37% to US$80.34pb, as at report time. Spot Gold gained ca 0.54% day-on-day to settle at US$1,768.70 per ounce as at report time.

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