FINANCIAL MARKETS TODAY – 17 November 2021

FIXED INCOME MARKET
Money Markets 

Interbank system liquidity improved today, opening with a credit balance of ca ₦89.66 billion, higher than yesterday’s balance of ca – ₦36.13 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates eased further to 13.00% and 13.95% from 13.50% and 14.00% respectively, the previous day.

Treasury Bills

The NTB secondary market witnessed an active trading session, as investors cherry-picked the NTB papers at the long end of the curve. Activity was skewed to the August and November NTB 2022 papers at ca 5.75% – 5.85% while some mid tenor papers and CBN special bills saw moderate selloffs at 4.00% and 5.00%, respectively. Overall, the average rate dipped ca 8bps, to settle at 5.12%.  

Bonds

The FGN bonds secondary market traded on a calm note, with little to no trade executed across the curve. Market players remained on the sidelines, with a primary focus on the outcome of the penultimate bond auction for 2021. Overall, the average yield stayed flat, day-on-day at 11.69%.

Eurobonds

The Eurobonds space sustained a bearish trend, with selloffs seen on select maturities across the sovereign curve. Overall, the average yield rose by ca 3bps, day-on-day to 6.88%.

Equities

The domestic bourse erased some of the previous day’s gains, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.22% day-on-day to close at 43,349.90pts, while year-to-date returns dipped to +7.65%. This performance leaned heavily to profit-taking activities in Bellwethers like Access Bank Plc (-2.67%), Guaranty Trust Holding Company Plc (-2.23%), and First Bank of Nigeria Holdings Plc (-1.60%), respectively.

The NSE Consumer Goods, Banking, and Oil & Gas indices lost ca 0.66%, 0.37%, and 0.19% respectively, while the NSE Industrial Goods index gained ca 0.01% day-on-day.

First Bank of Nigeria Holdings Plc led the volume chart with ca 68.61 million units while Nestle Nigeria Plc topped the value charts with ca ₦2.97 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, as the International Energy Agency (IEA) and OPEC warned of impending oversupply as the recent surge in coronavirus cases in Europe increased the downside risks to demand recovery. Thus, Brent Crude oil price lost ca 0.82% day-on-day to settle at US$81.75pb, while WTI also lost ca 1.16% to US$79.85pb, as at report time. Spot Gold gained ca 0.78% day-on-day to settle at US$1,868.10 per ounce as at report time.

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