FINANCIAL MARKETS TODAY – 20 October 2021

FIXED INCOME MARKET
Money Markets  

Interbank system liquidity slipped into a deficit, opening with a balance of ca -₦77.17 billion, lower than the Monday’s opening balance of ca ₦55.56 billion. However, with no significant funding needs and additional inflow from OMO maturity worth ca ₦85 billion, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 14.50% and 15.00% from 15.00% and 15.50% respectively, on Monday.

Treasury Bills

The NTB secondary market was relatively calm today, however, few trades were executed at the long end of the NTB curve, particularly for August-October papers at ca 6.75% levels. Overall, the average rate dipped ca 5bps, day-on-day to settle at 4.84%.  

Bonds

The FGN bonds secondary market was largely quiet as market players’ attention was centered on the outcome of the bond auction. However, the 2049s and 2050s saw bids around 12.90% and 13.20% respectively. Overall, the average yield dipped by 4bps, day-on-day to 11.73%.

Eurobonds

A quiet trading session was observed in the Eurobonds space, with only a handful of trades executed across the sovereign curve. Consequently, the average yield remained stable, day-on-day at 6.44%.

Equities

The domestic bourse closed the day in the green, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.26% day-on-day, to close at 41,249.71pts. The market year-to-date returns extended to +2.43%, as investors’ optimistic sentiments spurred buying interest on stocks such as First Bank of Nigeria Holdings Plc (+3.83%), MTN Nigeria Communications Plc (+1.24%) and Zenith Bank Plc (+0.40%).

The NSE Industrial Goods index gained ca 0.04%, while the NSE Oil & Gas , Consumer Goods and Banking indices lost ca 0.39%, 0.24%, and 0.20% day-on-day, respectively.

First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 147.60 million units traded at ca ₦1.76 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.07/$1.00 from ₦414.73/$1.00.

Commodities

Global crude oil prices rose today, as the Chinese government intensified efforts to control record-high coal prices and guarantee coal mines function at full capacity. Thus, Brent Crude oil price gained ca 0.19% day-on-day to settle at US$85.24pb, while WTI rose by ca 0.49% to US$83.37pb, as at report time. Spot Gold gained ca 0.77% day-on-day to settle at US$1,784.10 per ounce as at report time.

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