FINANCIAL MARKETS TODAY – 29 December 2021

FIXED INCOME MARKET
Money Markets

Interbank system liquidity remains elevated, to open with a credit balance of ca ₦185.14 billion lower than Friday’s balance of ca ₦350.48 billion. Nonetheless, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 11.00% and 11.50% from 12.00% and 12.50%, respectively on Friday.

Treasury Bills

The NTB secondary market was relatively quiet, albeit with a bearish tinge due to the uncertainty of an increase in NTB stop rates at today’s auction. Despite the thinned trades observed across the curve, the long-dated papers alongside the February and May CBN special bills were offered at 5.10%, 5.50%, and 6.00%, respectively. Overall, the average rate stayed stable, day-on-day, at 4.33%.

Bonds

The FGN bond secondary market saw mixed sentiments, with some demand seen on the 2023s, 2024s, and 2037s, while most offers were observed on the 2049s. However, very few trades were executed across the curve as market players stuck to the sidelines following the holidays. Overall, the average yield stayed relatively flat, day-on-day at 11.88%.

Eurobonds

The Eurobonds space sustained a bullish trend, with buying interests seen across the sovereign curve. Overall, the average yield dipped by ca 7bps, day-on-day to 7.27%.

Equities

The domestic bourse erased gains from the previous trading session, largely dominated by bearish sentiments. The Nigerian Stock Exchange All Share Index (NGX ASI) lost 1.08% day-on-day to close at 41,807.10pts, while year-to-date returns trimmed to +3.82%. Profit-taking activities skewed to stocks like BUA Cement Plc (-10.00%) and MTN Nigeria Communications Plc (-0.38%), respectively.

The NSE Banking Index gained ca 1.41%, while the NSE Industrial Goods, Oil & Gas, and Consumer Goods indices lost ca 3.91%, 0.52% and 0.16% day-on-day, respectively.

Jaiz Bank Plc led the volume chart with ca 17.65 million units while MTN Nigeria Communications Plc topped the value charts with ca ₦359.36 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦415.00/US$1.00 from ₦415.10/US$1.00, on Friday.

Commodities

Global crude prices held close to $80 per barrel, as global supply disruptions and dwindling US oil inventories outweighed concerns that growing coronavirus cases might dampen demand. Thus, Brent Crude oil price rose ca 0.16% day-on-day to settle at US$79.07pb, while WTI also gained ca 0.24% to US$76.16 as at report time. Spot Gold dipped ca 0.53% day-on-day to settle at US$1,801.30 per ounce as at report time.

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