Financial Markets Today

Financial Markets Today

Global financial markets turned positive today, after the release of U.S. jobs and unemployment data for April 2019, indicating non-farm jobs grew by 263,000 in April vs market analysts expectation of 190,000 and above average for previous 3months of 2019 of 164,000 jobs. This also comes as unemployment figure dropped to its lowest in almost 50-years, at 3.60% vs market analyst expectation of 3.8%, further supporting economic growth in the world’s largest economy in Q1 2019, which recorded 3.2%.

With continued positive sentiments of global financial indices, on the back of recently released better-than-expected economic data from the world’s largest economies – U.S., China and the Eurozone area, we expect current dovish monetary stance of Central Banks in Developed Markets (DMs) to be maintained in the near term, to further support the rise in economic activities in DMs, with possible improvement in demand and consumer spending within the economies.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened positive today at ca +₦246bn. There was no Open Market Operation (OMO) auction by the Central Bank of Nigeria (CBN) today.

Treasury Bills
The treasury bills secondary market continued bullish today, with demand at the short-to-mid end of the curve, in the absence of Open Market Operation (OMO) auction by the Central Bank Nigeria (CBN). Average rate remained flat day-on-day, with the 31 October 2019 maturity was the most active as it closed at 12.38% from 12.68%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded lower day-on-day at 5.29% and 5.93% from 6.14% and 7.29%. Average fixed deposit rates amongst banks monitored showed:
– tier-1 rated banks at 3.00% for 30 – 60 days tenor on ₦10mln – ₦100mln.
– tier-2 rated banks at 7.00% for 30 – 60 days tenor on ₦10mln – ₦100mln.

Bonds
The bonds secondary market ended the week on a quiet note with few trading activities seen on select maturities. Average yields remained flat day-on-day, with the July 2021 maturity closing at 14.82%.

Eurobonds

The nation’s Eurobonds market closed bearish today, with little investor interest across the curve. Average yields gained ca +6bps day-on-day with the January 2049 maturity closing at 8.42% from 8.34%.

Equities

The Nigerian equities market ended the week on a positive note today, with the Nigerian Stock Exchange All Share Index (NSE ASI) gaining ca +0.14% day-on-day to close at 29,212.00pts, and market’s year-to-date returns at -7.06%. This was mainly due to gains in Guaranty Trust Bank Plc (+1.36%) and Seplat Petroleum Development Company Plc (+0.85%)..

The NSE Banking and Industrial indices gained ca +28bps and +28bps respectively, while the NSE Consumer Goods and Oil & Gas indices lost ca -26bps and -41bps respectively. Access Bank Plc led both the volume and value charts with ca 60.39m units traded at ₦414.58mn respectively.

The Naira traded flat against the dollar in both the interbank and parallel markets today at ₦306.95/$1 and ₦360/$1 respectively. It remained flat against the Pound sterling at ₦470/₤1 and appreciated against the Euro at ₦400/€1 in the parallel market. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate depreciated against the Dollar at ₦360.54/$1 from ₦360.32/$1.

Oil prices recovered today, on the back of better-than-expected U.S. jobs and unemployment data released today, and on continued U.S. sanctions on Iran and Venezuela. Brent crude oil price gained ca +0.95% day-on-day at $71.42pb, while WTI gained ca +1.02% day-on-day at $62.44pb, as at report time. Spot gold gained ca +0.76% to close at $1,281.70 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
COURTVILLE 0.22 0.02 +10.00%
FIDSON 4.60 0.40 +9.52%
CCNN 15.85 1.25 +8.56%
JAPAULOIL 0.39 0.03 +8.33%
AGLEVENT 0.28 0.02 +7.69%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
GOLDINSURE 0.36 -0.04 -10.00%
CHAMS 0.45 -0.05 -10.00%
DANGFLOUR 17.10 -1.85 -9.76%
MCNICHOLS 0.50 -0.05 -9.09%
REGALINS 0.23 -0.02 -8.00%
Benchmark T-Bills Discount Rates
03-May-19 02-May-19 Change in Rates
90 Days                                      . 11.08% 10.35% 0.73%
181 Days 12.38% 12.60% -0.22%
348 Days. 12.65% 12.74% -0.09%
Source: FMDQ DQL for 03 May 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
03-May-19 02-May-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.82% 14.81% 0.01%
5 yrs: 15.54% 27-Apr 2023 14.69% 14.63% 0.06%
10 yrs: 13.98% 17 Mar 2028 14.46% 14.50% -0.04%
20 yrs: 16.25% 18-Apr 2037  . 14.57% 14.54% 0.03%
Source: FMDQ DQL for 03 May 2019
Benchmark FGN EuroBond Yields
03-May-19 02-May-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.90% 4.85% 0.05%
5 yrs: NGERIA 6 3/8 07/12/23 5.54% 5.50% 0.04%
10 yrs: NGERIA 6 1/2 11/28/27 6.75% 6.67% 0.08%
20 yrs: NGERIA 7.696 02/23/38 7.82% 7.76% 0.06%
30 yrs: NGERIA 9.248 01/21/49 8.44% 8.34% 0.08%
Source: FMDQ DQL for 03 May 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.14% per annum
Added Benefit Personal accident insurance cover
AIICO Capital Guaranteed Income Note (GIN) Rates p.a.
Amount (NGN) 30 Days 60 Days 90 Days 180 Days 364 Days
10,000,001 – 50,000,000 10.00 10.50 11.00 12.00 13.00
50,000,001 – 100,000,000 11.00 11.25 11.50 12.50 14.00
100,000,001 – 400,000,000 12.00 12.25 12.50 13.00 14.50
Trading Treasury Bills Rates p.a.
Maturity Dates Tenor (Days) Discount Rate Effective Yield
01-Aug-19 90 9.70% 9.94%
17-Oct-19 167 12.15% 12.87%
07-Nov-19 188 12.40% 13.25%
16-Jan-20 258 12.35% 13.53%
Select Macro-economic Indices
Inflation % (March 2019) 11.25 (-1.66% ytd)
PMI (April 2019) 57.70
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 71.42 (+0.95% d/d)
External Reserve (US$’billion) 44.792 (+2.27% ytd)
GDP % (Q4 2018) +2.38% (Q3 2018: +1.81% y/y)
NSE All Share Index (ASI) 29,212.00 (+0.14% d/d; -7.06% ytd)
Market Capitalisation (₦’Trillion) 10.98

Financial Markets Update – 03 May 2019

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