FINANCIAL MARKETS TODAY – 29 October 2021

FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity improved slightly, opening with a deficit balance of ca ₦14.49 billion, better than yesterday’s balance of ca ₦210.19 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) trended higher at 18.00% and 18.50% from 14.80% and 15.25% respectively, the previous day.

Treasury Bills                                                                  

The NTB secondary market sustained its bullish momentum, with demand seen on the 27 October 2021 paper at 6.70% levels. However, the CBN special bill was mostly offered in the market at 5.70% levels. Overall, the average rate lost ca 5bps, day-on-day at 5.29%.

 Bonds  

A mixed sentiment was seen in the FGN bonds secondary market today, with most trades executed on the 2026, 2027, 2028, 2029, 2036, and 2050 maturities. Overall, the average yield remained flat, day-on-day at 11.28%.

Eurobonds

Activity in the Eurobond space was bearish today, with offers seen across the yield curve. Overall, average yield rose by ca 5bp, day-on-day at 6.57%.

Equities

The domestic equities market ended the month with a positive performance as the Nigerian Stock Exchange All Share Index (NSE ASI) gained 0.18% day-on-day to close at 42,038.60pts, while year-to-date returns rose to 4.39%. This performance was largely supported by gains in Zenith Bank Plc (+0.80%), Guaranty Trust Holding Company Plc (+0.35%).

The NSE Oil & Gas, Banking, and Industrial Goods indices gained ca 2.10%, 1.23%, and 0.34% respectively, while the NSE Consumer Goods index lost ca 0.42% day-on-day.

First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 56.98 million units traded at ca ₦645.12 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦415.10/US$1.00.

Commodities

Global crude oil prices recovered from previous day’s losses today, on expectation that the Organization of Petroleum Exporting Countries (OPEC+) and allies will maintain a tight global crude oil supply due to sustained rise in U.S crude inventories. Thus, Brent Crude oil price gained ca 0.25% day-on-day to settle at US$84.53pb, while WTI declined by ca 0.14% to US$82.68pb, as at report time. Spot Gold lost ca 0.55% day-on-day to settle at US$1,792.50 per ounce as at report time.

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