FINANCIAL MARKETS TODAY – 13 December 2021

FIXED INCOME MARKET
Money Markets

Interbank system liquidity opened the week with a credit balance of ca ₦120.38 billion, albeit lower than Friday’s opening balance of ca ₦192.51 billion. However, with no significant funding activity, the Open Buy Back (OBB) and Overnight (ON) rates trended lower to settle at 13.50% and 14.00% from 17.50% and 17.75%, respectively on Friday.

Treasury Bills

The NTB secondary market started the week on a quiet note, as market players stayed on the sidelines ahead of the penultimate NTB auction for the year. However, there were few offers on the CBN special bills and the November 2022 NTB papers at ca 5.10% and 5.00%, respectively. Overall, the average rate remained stable, day-on-day at 4.34%.

Bonds

The FGN bonds secondary market witnessed subdued activity, with trickles of trade executed across the curve. Trading interest was skewed towards the 2037s and 2050s, with traction observed on the latter at ca 13.25% levels. Overall, the average yield dipped ca 2bps day-on-day at 11.91%.

Eurobonds

Mixed trading sentiments were observed in the Eurobonds space, with only a handful of trade executed across the sovereign curve. Overall, the average yield remained flat day-on-day at 7.20%.

Equities

The domestic bourse ended trading activities on a positive note, with the market’s year-to-date returns positioned at ca 5.32%. The Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.26% day-on-day, to close at 42,411.12pts, with buying interests observed on bellwethers like MTN Nigeria Communications Plc (+7.05%) and Dangote Cement Plc (+1.19%).

The NSE Industrial Index gained ca 0.66%, while the NSE Oil & Gas, Banking, and Consumer Goods indices lost ca 0.86%, 0.47% and 0.05% day-on-day, respectively.

Unity Bank Plc led the volume chart with ca 48.32 million units while Nestle Nigeria Plc led the value charts with ca ₦846.76 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦414.06/US$1.00 from ₦415.10/US$1.00, on Friday.

Commodities

Global crude oil prices declined today, as rising concerns about the Omicron Coronavirus variant and the vaccine efficacy continue to weigh on market sentiments. Thus, Brent Crude oil price lost ca 0.55% day-on-day to settle at US$74.74pb, while WTI also dipped ca 0.52% to US$71.30 as at report time. Spot Gold gained ca 0.24% day-on-day to settle at US$1,789.00 per ounce as at report time.

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