Financial Markets Today

Financial Markets Today

Global crude oil prices rallied to their highest in 2019 today, reaching its highest levels in 5-months, with Brent crude oil price rising to ca $69.50 per barrel on expected improved supply cuts by the Organisation of Petroleum Exporting Countries (OPEC). This comes as a Reuters survey indicated that crude oil supply from OPEC in March 2019 declined to its lowest in 4-years on the back of higher-than-expected supply cuts by OPEC’s largest oil exporter – Saudi Arabia and involuntary supply cuts due to rising impact of sanctions on Venezuela and Iran.

 

With recent improved tone from the Presidents of both U.S. and China, and expected push for a quick resolution to the current trade negotiations between both countries, we expect further rise in investors positive sentiments of global equities market in the near term.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity was expected to open on a positive note today. There was no Open Market Operation (OMO) auction today by the Central Bank of Nigeria
(CBN).

Treasury Bills
A bullish trading day in treasury bills secondary market today with renewed investors interest. Average yields shed ca -6bps day-on-day, with most activities seen on short-to-mid dated maturities. The 20 June maturity traded most to close at 10.42% from 10.68%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates dropped day-on-day to 15.29% and 16.14% from 19.71% and 20.86%, respectively. 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 7.50% for 30 – 60 days tenor on ₦10mln – ₦100mln.

Bonds
The bonds secondary market ended the week on a bearish note with some sell offs seen across the curve. The Debt Management Office (DMO) released the Q2 Bonds issuance calendar which showed a maximum offering of ca ₦345 billion and 2 new maturities on offer – a 10year April 2029 and 30year April 2049. Average yields gained ca +4bps day-on-day with most of the day’s trading activities seen on the March 2025 maturity which traded the most to close at 14.40% from 14.31%.

Eurobonds

A quiet end to the week in the nations Eurobonds market today with average yields shedding ca -1bps day-on-day. Most activities was seen at the short-end of the curve with the January 2021 closing at 4.88% from 4.91%.

Equities
The Nigerian equities market appreciated today after 4 consecutive days of losses, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained ca +0.21% day-on-day to close at 29,616.38pts, with market’s year-to-date returns at -5.77%. This was majorly on the back of gains in mid-cap stocks as Dangote Flour Mills Plc (-6.88%) and Dangote Sugar Refinery Plc (-1.09%).

The NSE Banking, Consumer Goods and Industrial indices all gained ca +33bps, +17bps and +119bps respectively, while the NSE Oil & Gas index remained flat. Sterling Bank Plc led the volume chart with 59.87m units while Guaranty Trust Bank Plc led the value chart with ca ₦1.32bn worth of trades.

The Naira remained stable against the dollar in both the interbank and parallel markets today, at ₦306.95/$1 and ₦360/$1 respectively. It was also stable against the Pound sterling and the Euro at ₦475/₤1 and ₦405/€1 respectively, in the parallel market. In the Nigerian Autonomous Foreign Exchange (NAFEX) window, Naira depreciated marginally against the Dollar at ₦360.42/$1.

Global crude oil prices gained further today, and set for the longest weekly gains since November 2017 amid concerns over supply shortfalls from Venezuela and Libya, and rising optimism of U.S./China trade deal. Brent crude oil price gained ca +0.56% at $69.79pb, while WTI gained ca +0.76% at $62.57pb, as at report time. Spot gold gained ca +0.12% to close at $1,295.90 from $1,294.30 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
FIRSTALUM 0.33 0.03 +10.00%
CHAMS 0.24 0.02 +9.09%
THOMASWY 0.25 0.02 +8.70%
DANGFLOUR 8.55 0.55 +6.88%
AFRIPRUD 3.76 0.21 +5.92%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
ABCTRANS 0.48 -0.05 -9.43%
MCNICHOLS 0.68 -0.07 -9.33%
FIDSON 4.50 -0.45 -9.09%
NEIMETH 0.51 -0.05 -8.93%
LIVESTOCK 0.53 -0.05 -8.62%
Benchmark T-Bills Discount Rates
05-Apr-19 04-Apr-19 Change in Rates
62Days                                      . 11.71% 11.92% -0.21%
153Days- 13.13% 13.18% -0.05%
328Days. 12.92% 12.92% 0.00%
Source: FMDQ DQL for 05 April 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
05-Apr-19 04-Apr-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.40% 14.44% -0.04%
5 yrs: 15.54% 27-Apr 2023 14.31% 14.31% 0.00%
10 yrs: 16.29% 17 Mar 2027 14.46% 14.53% -0.07%
20 yrs: 16.25% 18-Apr 2037  . 14.32% 14.38% -0.06%
Source: FMDQ DQL for 05 April 2019
Benchmark FGN EuroBond Yields
05-Apr-19 04-Apr-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.88% 4.91% -0.03%
5 yrs: NGERIA 6 3/8 07/12/23 5.47% 5.48% -0.01%
10 yrs: NGERIA 6 1/2 11/28/27 6.67% 6.68% -0.01%
20 yrs: NGERIA 7.696 02/23/38 7.74% 7.75% -0.01%
30 yrs: NGERIA 9.248 01/21/49 8.25% 8.26% -0.01%
Source: FMDQ DQL for 05 April 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.68% 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-19 118 11.70% 12.16%
17-Oct-19 195 12.60% 13.51%
07-Nov-19 216 12.65% 13.67%
16-Jan-20 286 12.55% 13.92%

 

Select Macro-economic Indices
Inflation % (February 2019) 11.31 (-1.14% ytd)
PMI (March 2019) 57.40
MPR (%) 14 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 69.79 (+0.56% d/d)
External Reserve (US$’billion) 44.648 (+3.55% ytd)
GDP % (Q4 2018) +2.38% (Q3 2018: +1.81% y/y)
NSE All Share Index (ASI) 29,616.38 (-0.21% d/d; -5.77% ytd)
Market Capitalisation (₦’Trillion) 11.12

 

 

Financial Markets Update – 05 April 2019

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