FINANCIAL MARKETS TODAY – 06 December 2021

FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity decreased further today, opening with a deficit balance of ca ₦50.95 billion, lower than the Friday’s opening balance of ca ₦25.49 billion. Nonetheless, the Open Buy Back (OBB) and Overnight (ON) rates were maintained at 15.50% and 15.75% respectively.

Treasury Bills                                                                  

The NTB secondary market opened the week with subdued activity, as investors remained cautious ahead of the first Primary Market Auction for the month – only a handful of trades were executed on the long-end of the yield curve at 5.35%. However, the CBN’s special bill saw some traction at 5.90% to 6.00% levels, as some banks sought to create liquidity following the latest round of CRR debits that took place last week Friday. Overall, average yields inched up by 3bps day-on-day to 4.32%.

Bonds  

Activity in the FGN bonds secondary market was also muted, albeit with a slightly bullish undertone, as mild demand was seen on the 2050 maturity at 13.30%. Notable offers was also seen on the 2028 and 2036 maturities, however trades executed were few and far between. Thus, average yield stayed relatively flat day-on-day at 11.55%.

Eurobonds

The Eurobonds space was mixed today, some offers were seen at the short-end of the yield curve, while some demand was seen at the mid to long-end of the curve. Overall, average yield remained stable day-on-day to 7.39%.

Equities

The domestic bourse sustained its negative performance, with the Nigerian Stock Exchange All Share Index (NGX ASI) losing 0.38% day-on-day to close at 42,008.60pts, while year-to-date performance declined to +4.32%. This was largely due to losses in stocks such as Lafarge Africa Plc (-9.94%), and Guaranty Trust Holding Company Plc (-0.62%).

The NSE Banking, Industrial Goods, Consumer Goods and Oil and Gas indices lost ca 1.37% 0.58%, 0.34% and 0.11% respectively, day-on-day.

First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 128.87 million units traded at ca ₦1.51 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.00/US$1.00 from  ₦414.73/US$1.00, the previous day.

Commodities

Global crude oil prices rose today, as world’s largest crude oil exporter, Saudi Arabia raised prices for its crude sold to Asia and the United States. Thus, Brent Crude oil price gained ca 2.25% day-on-day to settle at US$71.42pb, while WTI also gained ca 2.55% to US$67.95 as at report time. Spot Gold lost ca 0.15% day-on-day to settle at US$1,781.20 per ounce as at report time.

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