FINANCIAL MARKETS TODAY – 12 January 2022

FIXED INCOME MARKET

Money Markets                                                                                 

Interbank system liquidity recovered slightly today, opening with a balance of ca ₦47.41 billion, higher than previous day’s opening deficit balance of ca ₦74.98 billion. Thus, the Overnight Policy Rate (OPR) and Overnight (ON) rates trended lower to settle at 15.00% and 15.75% from 15.50% and 16.25% respectively.

Treasury Bills                                                                   

The NTB market had another quiet session, as focus shifted to the first NTB Primary Market Auction (PMA) of the year. However, mild interest was seen on the CBN Special bills, particularly the March to May maturities at 5.80% levels. Overall, average rate dipped by ca 2bps to 4.28%.

Bonds  

The FGN bonds secondary market was also quiet today, however, some demand was seen on the 2023, 2024 and 2026 maturities as investors took position ahead of the expected coupon inflows and bond maturity. Overall, the average yield fell by ca 4bps, day-on-day to 11.57%.

Eurobonds

The Eurobonds secondary market endured a bearish theme, with sell-offs seen at the mid to long-end of the yield curve. Overall, the average yield remained unchanged day-on-day, at 7.59%.

Equities

The domestic equities market reversed previous day’s losses to close the day with positive performance as the Nigerian Stock Exchange All Share Index (NGX ASI) gained 1.71% day-on-day to settle at 44,608.82pts, while year-to-date returns rose to +4.43%. This performance was largely due to keen interest in stocks such as Dangote Cement Plc (+6.18%), Seplat Petroleum Development Company Plc (+2.99%) and MTN Nigeria Communications Plc (+2.15%).

The NSE Industrial Goods, Oil & Gas, Banking and Consumer Goods indices gained ca 3.06%, 1.37%, 0.39% and 0.14% respectively, day-on-day.

Transnational Corporation of Nigeria Plc led the volume chart with ca 89.02 million units, while Seplat Petroleum Development Company Plc topped the value chart with ca ₦930.23 billion.

Foreign Exchange

FMDQ’s Nigerian Autonomous Foreign Exchange Fixing (NAFEX) appreciated to ₦416.00/US$1.00, from ₦416.50/US$1.00 the previous day.

Commodities

Global crude prices rose further today, on rising optimism of a recovery in fuel demand as well as the expectation that the U.S Federal Reserve is likely to raise interest rates more slowly than expected. Thus, Brent Crude oil price gained ca 0.63% day-on-day to settle at US$84.25pb, while WTI also gained ca 1.12% to US$82.12 as at report time. Spot Gold gained ca 0.30% day-on-day to settle at US$1,824.00per ounce as at report time.

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