FINANCIAL MARKETS TODAY – 06 January 2022

FIXED INCOME MARKET
Money Markets

Interbank system liquidity somewhat eased, albeit opening with a credit balance of ca ₦260.97 billion, a decline from yesterday’s balance of ca ₦274.55 billion. Thus, with no significant funding, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 3.50% and 4.25% from 4.50% and 5.25%, the previous day.

Treasury Bills

The NTB secondary market reflected a bullish theme today, with trading activities skewed towards the CBN special bills at 5.60% levels. Overall, the average rates dipped ca 4bps, day-on-day, at 4.40%.

Bonds

The FGN secondary market traded on bullish sentiments, with notable demand seen predominantly on the 2023s, 2037s, and 2050s at 7.70%, 13.02%, and 13.08% levels, respectively. Overall, the average yield dipped ca 3bps, day-on-day, at 11.89%.

Eurobonds

The Eurobonds space witnessed a bearish stance, with sell activity seen on select maturities across the board. Overall, the average yield rose 14bps day-on-day, to 7.33%.

Equities

Performance in the domestic bourse sustained a positive trajectory, as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 0.30% day-on-day to close at 43,607.94pts, while year-to-date returns extended to +2.09%. Bargain hunting was observed on stocks such as BUA Foods Plc (+10.00%), First Bank of Nigeria Holdings Plc (+1.77%), and Access Bank Plc (+1.60%).

The NSE Banking Index gained ca 0.44% while the NSE Oil & Gas, Industrial, and Consumer Goods indices lost ca 0.90%, 0.39% and 0.12% day-on-day, respectively.

First Bank of Nigeria Holdings Plc led the volume chart with ca 27.08 million units while BUA Foods Plc topped the value charts with ca ₦544.69 million worth of trades.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) depreciated to ₦416.25/US$1.00 from ₦416.00/US$1.00, the previous day.

Commodities

Global crude prices extended gains from the previous day’s rally, on the back of the political turmoil described in Kazakhstan (OPEC+ crude producer) alongside reports of supply outages in Libya. Thus, Brent Crude oil price rose ca 1.72% day-on-day to settle at US$82.23pb, while WTI also gained ca 2.39% to US$79.71 as at report time. Spot Gold dipped ca 1.92% day-on-day to settle at US$1,790.00per ounce as at report time.

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