FINANCIAL MARKETS TODAY – 04 November 2021

FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened with a credit balance of ca ₦128.63 billion, slightly lower than the previous day’s opening of ca ₦136.64 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to 12.50% and 13.00% from 13.00% and 13.50% respectively, the previous day.

Treasury Bills

The NTB secondary market was relatively calm, albeit with a bullish undertone. Few trades were executed on the 25 August and 27 October NTB papers at ca 6.50% levels while sell-off sentiments were observed at the short end of the curve, particularly for the January and February 2022 maturities. Overall, the average rate dipped ca 5bps, day-on-day to 5.19%.

Bonds

The FGN bonds secondary market endured a quiet theme today, amid a dearth of trades executed and weak interest observed across the curve. Nonetheless, mild demand was witnessed on the 2026s, 2028s, and 2037s at 11.50%, 12.25% and 12.95% respectively, while offers were mostly seen on 2027s, 2049s, and 2050s. Overall, the average yield stayed relatively flat, day-on-day at 11.67%.

Eurobonds

The Eurobonds space witnessed a bullish stance, with improved buying sentiments seen across the sovereign curve. Overall, the average yield dipped by ca 3bps, day-on-day to 6.83%.

Equities

The domestic bourse closed trading activities in the red, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.08% day-on-day to close at 41,943.83pts, while year-to-date returns receded to 4.15%. Trading performance was depressed as investors sold off positions in stocks such as Unilever Nigeria Plc (-8.65%), United Bank for Africa Plc (-2.41%), and Access Bank Plc (-0.54%), respectively.

The NSE Oil & Gas, Consumer Goods, Banking, and Industrial Goods indices lost ca 0.64%, 0.58%, 0.51%, and 0.13% day-on-day, respectively.

First Bank of Nigeria Holdings Plc topped both the volume and value charts with ca 19.52 million units traded at ca ₦208.30 million.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.10/US$1.00 from ₦414.80/US$1.00, the previous day.

Commodities

Global crude oil prices rose today, on expectations that Organization of the Petroleum Exporting Countries and its allies (OPEC+) will reach a decision to keep current crude production output stable at today’s meeting, despite the pressure from the United States and large importers to increase output. Thus, Brent Crude oil price rose ca 0.34% day-on-day to settle at US$82.31pb, while WTI gained by ca 0.67% to US$81.40pb, as at report time. Spot Gold dropped ca 1.54% day-on-day to settle at US$1,761.90 per ounce as at report time.

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