FINANCIAL MARKETS TODAY – 12 November 2021

FIXED INCOME MARKET

Money Markets                                                                        

Interbank system liquidity improved to open with a balance of ca ₦460.88 billion, higher than previous day’s opening balance of ₦337.48 billion. However, the  Open Buy Back (OBB) and Overnight (ON) rates trended higher to 14.50% and 15.25% from 1.67% and 2.00% respectively, following the FX retail auction funding.

Treasury Bills                                                                   

The NTB secondary market traded on a quiet note today, albeit with a bullish undertone. The newly issued 1-year paper received the most traction as participants continue to fill lost bids. Most trades were executed between 6.05% to 6.10% levels. Overall, average rate stayed relatively flat at 4.96%.  

Bonds  

Activity in the FGN bonds secondary market was also subdued today, however pockets of trades were executed on the 2028, 2036 and 2050 maturities. Overall, the average yield remained unchanged, 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 2bps, day-on-day to 6.82%.

Equities

The domestic bourse continued its downward trajectory to close the week with negative performance, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost 0.68% day-on-day to close at 43,253.01pts, while year-to-date returns dropped to 7.41%. This was due to losses in MTN Nigeria Communications Plc (-4.50%) and United Capital Plc (-0.52%).

The NSE Banking and Consumer Goods indices gained ca 0.63% and 0.03% respectively, while the NSE Industrial Goods and Oil and Gas indices remained flat day-on-day.

First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 129.77 million units traded at ca ₦1.54 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.10/US$1.00 from ₦414.73/US$1.00.

Commodities

Global crude oil prices reversed some of the previous day’s gains, as the Organization of Petroleum Exporting Countries (OPEC) cut its world oil demand forecast for Q4 by 330,000 barrels per day, from last month’s projection. Thus, Brent Crude oil price lost ca 1.13% day-on-day to settle at US$81.91pb, while WTI also lost ca 1.48% to US$80.36pb, as at report time. Spot Gold lost ca 0.24% day-on-day to settle at US$1,859.60 per ounce as at report time.

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