Daily Market Roundup, Wednesday, 21st October, 2021

Dear Valued Investor,
Money Market: Today, system liquidity recovered from yesterday’s deficit to post a strong surplus of N67.5bn. However, interbank rates (OBB and O/N) did not reflect this improvement, increasing by 50bps to linger at 15.00% levels.

FX Market: Activity levels at the I&E window received a boost as average turnover surged by 94.7% to $334.97m in today’s session. Despite the surge in activity levels, naira lost N1.00 (0.24%) to close at N415.07. External reserves continued its upward spiral to close at $40.4bn.

Fixed Income: The bears dominated trading in the bond market as the average benchmark yield adjusted upward in response to yesterday’s auction. Market Players cherry-picked across the curve but most of today’s movement was seen at the short and long ends of the curve, while yields at the belly of the curve remained flat.

The boost in system liquidity did not filter into the treasury bills market as yields trended north at the close of today’s session. The apex bank conducted an OMO auction today offering a total of N30bn worth of bills, at the close of the auction, rates were maintained at 7.00%, 8.50%, and 10.10% on the short, mid, and long dated offers, respectively.
Equity Market: The equity market posted a strong performance today despite 56.72% decline in activity levels. The lead index appreciated by 1.10% to close at 41,704.11 points, the highest since 5th of February 2021. Investors insatiable appetite for large-cap tickers – BUACEMENT (6.12%), MTNN (1.16%), Airtel Africa (1.32%) and NB (7.14%), which also drilled down on small cap stocks drove the day’s gain. T0day’s performance expands the year-to-date gain of the market to 3.56%.
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