FINANCIAL MARKETS TODAY – 09 November 2021

FIXED INCOME MARKET

Money Markets                                                                 

Interbank system liquidity weakened slightly to open with a balance of ca ₦408.84 billion, higher than previous day’s opening balance of ₦449.22 billion. As a result, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to 2.67% and 3.33% from 4.75% and 5.25% respectively, the previous day.

Treasury Bills                                                                  

Activity in the NTB secondary market was quite bullish, although offers remained scarce. A lot of interest was seen on the August to October 2022 papers as investors took positions ahead of tomorrow’s Primary Market Auction (PMA). Overall, the average rate dipped ca 6bps, day-on-day to 5.16%.

Bonds  

The FGN bonds secondary market traded mixed sentiments today, albeit with a bullish tilt, with interest seen on the 2024, 2028, 2037 and 2050 maturities, while offers were witnessed on the 2029 and 2049 maturities. Overall, the average yield lost ca 3bps, day-on-day at 11.33%.

Eurobonds

The Eurobonds space sustained bullish sentiment, with buying interest witnessed across the curve. Overall, the average yield dipped by ca 1bps, day-on-day to 6.56%.

Equities

The domestic equities market sustained its positive performance, with the Nigerian Stock Exchange All Share Index (NSE ASI) gaining 1.12% day-on-day to close at 43,730.55pts, while year-to-date returns extended to 8.59%. This was due to gains in MTN Nigeria Communications Plc (+3.90%) and Airtel Africa Plc (+2.56%).

The NSE Consumer Goods, Industrial Goods, Oil and Gas and Banking indices gained ca 0.21%, 0.21%, 0.12% and 0.07% respectively, day-on-day.

Sterling Bank Plc led the volume chart with ca 83.31 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦1.08 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.07/US$1.00 from ₦414.55/US$1.00, the previous day.

Commodities

Global crude oil prices extended its gains, on sustained optimism of a positive outlook for energy demand following positive economic data.  Brent Crude oil price rose ca 0.38% day-on-day to settle at US$83.76pb, while WTI gained ca 0.67% to US$82.48pb, as at report time. Spot Gold gained ca 0.06% day-on-day to settle at US$1,829.10 per ounce as at report time.

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