FINANCIAL MARKETS TODAY – 14 December 2021

FIXED INCOME MARKET
Money Markets

Interbank system liquidity slipped into a deficit with an open balance of -ca ₦51.42billion, lower than yesterday’s opening balance of ca ₦120.38 billion. Thus, the Open Buy Back (OBB) and Overnight (ON) rates trended higher to settle at 13.75% and 14.25% from 13.50% and 14.00% respectively, the previous day.

Treasury Bills

The NTB secondary market reflected a slightly bullish theme, with much of the activity skewed to the long end of the curve. Buying interest from local investors was seen on the October NTB paper and on the CBN special bills, respectively. However, the average rate remained stable day-on-day at 4.34%, due to weak traded volumes.

Bonds

The FGN bonds secondary market witnessed another calm session, with very few trades executed across the curve, particularly on the 37s and 50s. Overall, the average yield dipped ca 2bps, day-on-day at 11.87%.

Eurobonds

Bearish sentiments dominated the Eurobonds space, with selloffs seen across the sovereign curve. Overall, the average yield rose ca 4bps day-on-day at 7.24%.

Equities

The domestic bourse reversed some of the previous day’s gains, as the Nigerian Stock Exchange All Share Index (NGX ASI) lost 0.22% day-on-day, to close at 42,317.52pts, while the market’s year-to-date returns retracted to ca 5.08%. This performance leaned heavily to selloffs in bellwethers like Guaranty Trust Holding Company Plc (-3.85%), United Bank for Africa (-1.25%), and Access Bank Plc (-1.10%), respectively.

The NSE Consumer Goods Index gained ca 0.08%, while the NSE Banking, Oil & Gas and Industrial Goods indices lost ca 1.11%, 0.08% and 0.05% day-on-day, respectively.

Access Bank Plc topped both the volume and value charts with ca 55.05 million units traded at ca ₦497.74million.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦414.80/US$1.00 from ₦414.06/US$1.00, the previous day.

Commodities

Global crude oil prices dipped further today, on the back of increasing concerns that the surge in Coronavirus cases would disrupt global demand recovery, causing supplies to increase next year. Thus, Brent Crude oil price lost ca 1.56% day-on-day to settle at US$73.25pb, while WTI also dipped ca 1.43% to US$70.27 as at report time. Spot Gold lost ca 0.73% day-on-day to settle at US$1,775.30 per ounce as at report time.

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