FINANCIAL MARKETS TODAY – 27 October 2021

FIXED INCOME MARKET
Money Markets 

Interbank system liquidity retracted today, opening with a deficit balance of ca ₦11.94 billion lower than yesterday’s balance of ca ₦0.78 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) trended lower by 10bps to settle at 14.50% and 15.15% respectively.

Treasury Bills

The NTB secondary market sustained its quiet stance today, as market players turned their focus to the NTB primary market auction. Nonetheless, there was a handful of trades executed across the NTB curve, particularly for mid-long dated papers. Overall, the average rates stayed flat, day-on-day at 5.29%.

Bonds

The FGN bonds secondary market traded on bullish sentiments, with sizable demand seen predominantly on the 2034s, 2035s, 2049s, and 2050s, respectively. Overall, the average yield dipped ca 7bps, day-on-day to 11.80%.

Eurobonds

Mixed trading sentiments were observed in the Eurobonds space today, with minimal activities across the sovereign curve. Overall, average yield remained stable, day-on-day at 6.51%.

Equities

The domestic bourse closed trading activities on a negative note, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost ca 0.06% day-on-day to close at 41,789.59pts, while market year-to-date return receded to ca +3.77%. This performance leaned heavily to profit taking activities in Bellwethers like First Bank of Nigeria Holdings Plc (-6.05%) and Nestle Nigeria Plc (-0.36%).

The NSE Oil & Gas, Banking, Consumer Goods, and Industrial Goods indices gained ca 1.70%, 0.51% and 0.05%, day-on-day, respectively. The NSE Consumer Goods Index closed flat.

First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 75.46 million units traded at ca ₦898.01 million.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated against the dollar to ₦415.07/US$1.00 from ₦415.10/US$1.00.

Commodities

Global crude oil prices halted gains, on the back of industry reports which showed that the U.S. crude oil stockpiles and fuel inventories rose ca 2.30 million barrels more than investors’ expectations of ca 1.9 million gain for the week ended Oct 22, 2021. Thus, Brent Crude oil price dropped ca 2.20% day-on-day to settle at US$84.50pb, while WTI declined ca 2.39% to US$82.61pb, as at report time. Spot Gold gained ca 0.24% day-on-day to settle at US$1,797.60 per ounce as at report time.

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