FINANCIAL MARKETS TODAY – 16 November 2021

FIXED INCOME MARKET
Money Markets 

Interbank system liquidity slipped into a deficit with an open balance of ca -₦36.13 billion, lower than yesterday’s opening balance of ca ₦48.50 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates rose slightly to 13.50% and 14.00% from 13.25% and 13.75% respectively, the previous day.

Treasury Bills

The NTB secondary market sustained a bullish theme, with demand seen mostly at the long end of the NTB curve. Overall, the average rate dipped ca 5bps, to settle at 5.14%.  

Bonds

The FGN bonds secondary market witnessed subdued trading activities, as market players remained cautious ahead of tomorrow’s bond auction. However, bearish sentiments were seen on select maturities – 2027s, 2036s, and 2049s, with very few trades executed due to the wide bid/ask spreads. Overall, the average yield remained unchanged, day-on-day at 11.07%.

Eurobonds

The Eurobonds space saw bearish sentiments, with selloffs seen across the sovereign curve. Overall, the average yield gained by ca 5bps, day-on-day to 6.85%.

Equities

The domestic bourse closed the day in positive territory, following buy interest in stocks such as Airtel Africa Plc (+4.39%) and First Bank of Nigeria Holdings Plc (1.63%). Thus, the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.49% day-on-day to close at 43,444.20pts, while market year-to-date returns extended to 7.88%.

The NSE Banking and Industrial Goods indices gained ca 0.11% and 0.01%, while the NSE Oil & Gas and Consumer Goods indices lost ca 3.10% and 0.38% day-on-day, respectively.

First Bank of Nigeria Holdings Plc led the volume chart with ca 22.36 million units while Nestle Nigeria Plc topped the value charts with ca ₦5.64 billion.

Foreign Exchange

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

Commodities

Global crude oil prices declined today, despite the prospect of low global crude stockpiles, as gains stalled due to investors’ concerns over the rise in Coronavirus cases in Europe. Thus, Brent Crude oil price lost ca 0.37% day-on-day to settle at US$81.75pb, while WTI also lost ca 0.75% to US$80.27pb, as at report time. Spot Gold lost ca 0.18% day-on-day to settle at US$1,863.30 per ounce as at report time.

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