FINANCIAL MARKETS TODAY – 31 December 2021

FIXED INCOME MARKET
Money Markets

Interbank system liquidity improved to open with a credit balance of ca ₦16.06 billion, higher than yesterday’s deficit balance of ca -₦2.23 billion. Thus, the Overnight Policy Rate (OPR) remained unchanged at 10.00% while the Overnight (ON) rates trended lower to settle at 10.50% from 11.25%, the previous day.

Treasury Bills

The NTB secondary market ended the week with tepid activity seen across the curve. There was notable interest on the CBN Special bills – February to May 2022 papers, but trades executed remained few and far between. Overall, the average rate stayed relatively flat, day-on-day, at 4.33%.

Bonds

The FGN secondary market was relatively calm, with only a handful of trades executed across board. Trading interest was skewed towards the 2024s, 2037s, and 2050s, respectively. Overall, the average yield dipped by ca 2bps, day-on-day, to 11.86%.

Eurobonds

The Eurobonds space sustained bullish sentiments at the close of the week, albeit with minimal activities observed across board. Overall, the average yield dipped by ca 1bp, day-on-day to 7.20%.

Equities

The domestic bourse ended this year’s trading activities with a positive performance. Despite the relatively brief session, the Nigerian Stock Exchange All Share Index (NGX ASI) gained 2.16% day-on-day to close at 42,716.44pts, while year-to-date returns extended to +6.07%. This performance was attributed to buy interest in bellwethers like Nestle Nigeria Plc (+10.00%), MTN Nigeria Communications Plc (+8.24%), and Access Bank Plc (+2.20%), respectively.

The NSE Consumer Goods, Banking, Oil & Gas, Industrial Goods Indices gained ca 6.69%, 0.66%, 0.21% and 0.07% day-on-day, respectively.

First Bank of Nigeria Holdings Plc led the volume chart with ca 77.93 million units while Nestle Nigeria Plc topped the value charts with ca ₦4.81 billion worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦435.00/US$1.00 from ₦415.00/US$1.00, the previous day.

Commodities

Global crude prices declined today, albeit on track to post the biggest gains since 2009, driven by the global economic rebound and supply curbs even as coronavirus infections surged to record highs around the world. Thus, Brent Crude oil price dipped ca 1.07% day-on-day to settle at US$78.66pb, while WTI also dropped ca 1.23% to US$76.04 as at report time. Spot Gold rose ca 0.60% day-on-day to settle at US$1,822.00 per ounce as at report time.

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