FINANCIAL MARKETS TODAY – 09 December 2021

FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity improved slightly today, opening with a balance of ca ₦14.65 billion, better than previous day’s opening balance of ca ₦5.25 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended lower at 13.75% and 14.25% from 15.75% and 16.25% respectively, the previous day.

Treasury Bills                                                                  

The NTB secondary market was relatively quiet today. However, some demand was seen at the long-end of the curve, as investors sought to fill lost demand at yesterday’s PMA.  Overall, average yield lost ca 2bps, day-on-day at 4.36%.

Bonds  

The FGN bonds market also saw subdued activities today. However, some demand was seen at the mid to long-end of the yield curve, particularly the 2050 maturity. Consequently, average yield remained unchanged day-on-day, at 11.58%.

Eurobonds

The Eurobonds space was bearish today, some sell-offs seen across the curve. Overall, average yield gained ca 2bps day-on-day at 7.18%.

Equities

The domestic bourse reversed some of previous day’s gains to close the day in the red, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 1.77% day-on-day to close at 41,685.22pts, while year-to-date performance declined to +3.51%. This was largely supported by losses in stocks such as Dangote Cement Plc (-10.00%) and United Bank for Africa Plc (-0.63%).

The NSE Oil and Gas, Banking and Consumer Goods indices gained 1.70%, 1.68% and 0.09% respectively, while the NSE Industrial Goods index shed 5.34% day-on-day.

First Bank of Nigeria Holdings Plc led both the volume and value charts with ca 228.53 million units and ca ₦2.61 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) remained stable at ₦415.07/US$1.00.

Commodities

Global crude oil prices declined further today, on sustained concern of the impact of Omicron, the new Coronavirus variant, on global crude oil demand. Thus, Brent Crude oil price lost ca 1.25% day-on-day to settle at US$74.85pb, while WTI also lost ca 1.33% to US$71.42 as at report time. Spot Gold lost ca 0.53% day-on-day to settle at US$1,776.10 per ounce as at report time.

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