FINANCIAL MARKETS TODAY – 10 December 2021

FIXED INCOME MARKET

Money Markets                                                                                

Interbank system liquidity improved further today, opening with a balance of ca ₦192.51 billion, better than previous day’s opening balance of ca ₦14.65 billion. Nevertheless, the Open Buy Back (OBB) and Overnight (ON) rates trended higher at 17.50% and 17.75% from 13.75% and 14.25% respectively, the previous day.

Treasury Bills                                                                  

The NTB secondary market was quiet today, however, few interests were witnessed on the long-dated maturities.  Overall, average yield remained unchanged, day-on-day at 4.36%.

Bonds  

The FGN bonds secondary market was also quiet today, albeit with a bullish tilt, as light demand was seen on the long dated maturities. Consequently, average yield lost ca 1bp day-on-day, at 11.57%.

Eurobonds

The Eurobonds space was bearish, some sell-offs seen across the curve. Overall, average yield gained ca 2bps day-on-day at 7.20%.

Equities

The domestic bourse closed the week in the green, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.47% day-on-day to close at 41,882.97pts, while year-to-date performance rose to +4.00%. This was largely supported by gains in stocks such as Guaranty Trust Holding Company Plc (+3.92%) and Zenith Bank Plc (+3.87%).

The NSE Banking, Oil and Gas, Consumer Goods and Industrial indices gained 2.20%, 1.30% 0.24% and 0.11% respectively, day-on-day.

C & I Leasing Plc led both the volume and value charts with ca 146.41 million units and ca ₦673.50 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦415.10/US$1.00 from ₦415.07/US$1.00, the previous day.

Commodities

Global crude oil prices rose today, on rising optimism that increasing new cases of the Omicron Coronavirus variant will not impact global crude oil demand and global growth. Thus, Brent Crude oil price gained ca 0.42% day-on-day to settle at US$74.73pb, while WTI also gained ca 0.59% to US$71.36 as at report time. Spot Gold lost ca 0.32% day-on-day to settle at US$1,771.00 per ounce as at report time.

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