FINANCIAL MARKETS TODAY – 11 November 2021

FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity declined further to open with a balance of ca ₦337.48 billion, lower than previous day’s opening balance of ₦403.99 billion, as investors settled sales from yesterday’s Primary Market Auction (PMA). Thus, the Open Buy Back (OBB) rate trended higher at 1.67% from 1.50%, while the Overnight (ON) rate remained unchanged at 2.00%.

Treasury Bills    

Bullish sentiments dominated the NTB secondary market today, as market players sought to fill lost bids after yesterday’s 49bps decline on the 1 year paper at the auction. Most traction was seen on the long dated papers, particularly the newly issued 1 year paper, with bids at 6.10% to 6.20%, while offers were at 5.85% to 6.00%. Overall, average rate dipped by 15bps across the curve to 4.96%.

Bonds  

Sentiment in the FGN bonds secondary market was mixed today, albeit with a bullish undertone. Buy-side interest was seen mostly on the short dated maturities, particularly the 2023s and 2024s, while the mid to long dated maturities witnessed mixed sentiments. Overall, the average yield fell by ca 8bps, day-on-day at 11.30%.

Eurobonds

The Eurobonds space saw bearish sentiments today, with sell-side activity witnessed across the curve. Overall, the average yield rose by ca 7bps, day-on-day to 6.81%.

Equities

The domestic bourse sustained its negative performance, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.22% day-on-day to close at 43,609.06pts, while year-to-date returns dropped to 8.29%. This was due to losses in Guaranty Trust Bank Plc (-0.90%),  Access Bank Plc (-0.53%) and Zenith Bank Plc (-0.41%).

The NSE Banking and Industrial Goods indices lost ca 0.95% and 0.10% respectively, the NSE Consumer Goods index gained ca 0.02%, while the NSE Oil and Gas index remained flat day-on-day.

First Bank of Nigeria Holdings Plc led the volume chart with ca 28.16 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦405.34 million.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) traded flat  at ₦414.73/US$1.00.

Commodities

Global crude oil prices extended gains today, despite reports that inflation rate in the United States rose to its highest in 30 years at 6.2%. Thus, Brent Crude oil price rose ca 0.71% day-on-day to settle at US$83.23pb, while WTI gained ca 0.53% to US$81.77pb, as at report time. Spot Gold gained ca 0.82% day-on-day to settle at US$1,863.40 per ounce as at report time.

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