FINANCIAL MARKETS TODAY – 19 November 2021

FIXED INCOME MARKET
Money Markets

Interbank system liquidity tapered today, closing the week with a deficit balance of ca -₦237.13 billion, significantly lower than the previous day’s balance of ca ₦11.25 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 19.00% and 20.00% from 13.00% and 13.56% respectively, the previous day.

Treasury Bills

The NTB secondary market traded sideways today, with buying interest seen on maturities at the long end of the NTB curve at ca 5.65% levels, while moderate selloffs were observed on the CBN’s special bills.  Similarly, the newly issued 1-year OMO paper traded at ca 5.50% levels at today’s session as the CBN continues to reduce the supply in that space. Overall, the average rate dipped ca 3bps, to settle at 4.99%.  

Bonds

The FGN bonds secondary market closed the week on a quiet stance, albeit with a bearish undertone on the back of tighter liquidity due to the bond auction settlement. Improved offers were seen mostly on the 2036s, 2037s, and 2050s at ca 12.86%, 12.90%, and 13.22%, respectively. However, bids remain scarce across the curve as market players also focus on the upcoming Monetary Policy Committee (MPC) meeting (the last one for 2021) scheduled for Monday. Overall, the average yield rose ca 6bps, day-on-day at 11.74%.

Eurobonds

The Eurobonds space was largely bearish, with sustained selloffs seen across the sovereign curve. Overall, average yield rose by ca 9bps, day-on-day to 7.03%.

Equities

The domestic bourse closed the week on a bearish note as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.20% day-on-day to close at 43,199.27pts, while year-to-date returns reduced to +7.27%. Selloff activity in Bellwethers like Guaranty Trust Holding Company Plc (-2.68%), Access Bank Plc (-1.10%), and Zenith Bank Plc (-0.83%), respectively spurred the negative performance observed.

The NSE Banking, Consumer Goods, Oil & Gas, and Industrial Goods indices lost ca 0.79%, 0.57%, 0.23%, and 0.01% day-on-day, respectively.

Guaranty Trust Holding Company Plc topped both the volume and value charts with ca 49.93 million units traded at ca ₦1.26 billion.

Foreign Exchange

FMDQ Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.40/US$1.00 from ₦414.80/US$1.00.

Commodities

Global crude oil prices dipped below US$80.00 per barrel today, as investors’ sentiments dampened due to the recent surge in Coronavirus cases in Europe as well as the potential release of crude stockpiles by major oil consumers to regulate global energy prices. Thus, Brent Crude oil price lost ca 2.31% day-on-day to settle at US$79.46pb, while WTI also dipped ca 2.54% to US$77.00pb, as at report time. Spot Gold lost ca 0.20% day-on-day to settle at US$1,857.60 per ounce as at report time.

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