Financial Markets Today

Financial Markets Today

Nigeria’s Headline inflation for April 2019 rose to its highest level in 2019, rising to 11.37% year-on-year (y/y), from 11.25% y/y recorded in March 2019, its first month-on-month increase in 2019, data from the Nigerian Bureau of Statistics showed today. The rise can be attributed to higher food prices recorded in the month with the food sub-index rising to 13.70% vs 13.45% in March 2019, while the Core sub-index declined for a 3rd consecutive month to 9.30% from 9.50%.

We expect this to have little impact on current trend in rates at the short-end of the curve in the fixed income, as investors’ interest remains focused on fixed income assets vs other asset classes. We do not expect the Central Bank (CBN) to make any immediate change to its current rate direction to stimulate economic growth, as indicated at its last Monetary Policy Committee (MPC) meeting.





Banking system liquidity opened positive today at ca ₦182.2bn up from ca ₦133.4bn yesterday. The Central Bank of Nigeria (CBN) did not conduct an Open Market Operation (OMO) auction today.

Treasury Bills
The treasury bills secondary market continued to trade on a bullish note today, on the back of positive interbank liquidity and market expectations of lower stop rates at the today’s Primary Market Auction (PMA). Average rates shed ca -16bps day-on-day with 05 September 2019 maturity trading the most to close at 11.57% from 12.06%. Please find below a summary of the results of today’s auction:

Tenor 91-Days 175-Days 336-Days
Maturity Date: 14-Aug-19 13-Nov-19 13-May-20
Amount Offered: ₦3.384 billion ₦16.920 billion ₦13.536 billion
Subscription ₦8.139 billion ₦51.141 billion ₦132.071 billion
Amount Allotted: ₦4.384 billion ₦12.920 billion ₦16.536 billion
Range of bids 9.5000% – 12.5000% 11.8000% – 13.4664% 12.0000% – 14.4000%
Stop Rate 10.0000% 13.0000% 12.4900%

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded lower day-on-day at 9.86% and 10.57% from 11.71% and 12.64%. 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.

A quiet session in bonds secondary market today, with few transactions on the mid-to-long dated maturities. Average yields gained ca +2bps day-on-day, with the April 2023 maturity closing at 14.41% from 14.35%.


The nation’s Eurobonds market saw more demand today, with investors’ interest seen across the curve, taking advantage of the elevated yields from the previous day. Average yields shed ca -6bps day-on-day with the January 2049 maturity closing at 8.64% from 8.79%.


The Nigerian equities market declined for an 8th consecutive trading day, with the Nigerian Stock Exchange All Share Index (NSE ASI) shedding ca -0.48% day-on-day to close at 28,286.08pts, and market’s year-to-date returns at -10.00%. This was mainly due to losses in Dangote Cement Plc (-0.28%).

The NSE Banking, Consumer goods, Industrial and Oil & Gas indices all lost ca -74bps, -7bps, -231bps and -100bps respectively. Access Bank Plc led the volume chart with 35.76m units while Guaranty Trust Bank Plc led the value chart with ₦551.13m worth of trades.

The Naira remained flat against the dollar in both the interbank and Parallel markets at ₦306.95/$1 and ₦361/$1 respectively. It also remained stable against the Euro at ₦402/€1, while appreciating against the Pound sterling at ₦472/₤1, in the parallel market. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate appreciated to ₦360.34/$1 from ₦360.42/$1.

Oil prices rose further today, as weekly data released today by the Energy Information Administration (EIA) showed U.S. shale stockpile rose less than expected last week. This comes after yesterday’s reported drone attacks on Saudi Arabia’s oil pumping stations. Brent crude oil price rose by ca +0.75% day-on-day at $71.75pb, while WTI gained ca +0.47% day-on-day at $62.07pb, as at report time. Spot gold gained ca +0.10% to close at $1,297.60 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
CHAMS 0.36 0.03 +9.09%
ABCTRANS 0.27 0.02 +8.00%
THOMASWY 0.29 0.02 +7.41%
VERITASKAP 0.21 0.01 +5.00%
MBENEFIT 0.22 0.01 +4.76%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
WAPIC 0.36 -0.04 -10.00%
FO 31.5 -3.45 -9.87%
CHAMPION 1.29 -0.14 -9.79%
CCNN 13.9 -1.40 -9.15%
COURTVILLE 0.24 -0.02 -7.69%
Benchmark T-Bills Discount Rates
15-May-19 14-May-19 Change in Rates
85 Days 10.61% 11.05% -0.44%
176 Days 12.23% 12.39% -0.16%
337 Days. 12.45% 12.50% -0.05%
Source: FMDQ DQL for 15 May 2019
Benchmark FGN Bond Yields
15-May-19 14-May-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.65% 14.53% 0.12%
5 yrs: 15.54% 27-Apr 2023 14.07% 14.07% 0.00%
10 yrs: 13.98% 17 Mar 2028 14.36% 14.43% -0.07%
20 yrs: 16.25% 18-Apr 2037  . 14.29% 14.29% 0.00%
Source: FMDQ DQL for 15 May 2019
Benchmark FGN EuroBond Yields
15-May-19 14-May-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.92% 4.96% -0.04%
5 yrs: NGERIA 6 3/8 07/12/23 5.67% 5.74% -0.07%
10 yrs: NGERIA 6 1/2 11/28/27 7.05% 7.11% -0.06%
20 yrs: NGERIA 7.696 02/23/38 8.05% 8.11% -0.06%
30 yrs: NGERIA 9.248 01/21/49 8.64% 8.71% -0.07%
Source: FMDQ DQL for 09 May 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.27% 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 79 9.85% 10.06%
17-Oct-19 156 12.05% 12.70%
07-Nov-19 177 11.90% 12.63%
16-Jan-20 247 12.05% 13.12%
Select Macro-economic Indices
Inflation % (March 2019) 11.37 (+1.07% ytd)
PMI (April 2019) 57.70
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 71.75 (+0.73% d/d)
External Reserve (US$’billion) 44.959 (+2.23% ytd)
GDP % (Q4 2018) +2.38% (Q3 2018: +1.81% y/y)
NSE All Share Index (ASI) 28,286.08(-0.48% d/d; -10.00% ytd)
Market Capitalisation (₦’Trillion) 10.63

Financial Markets Update – 15 May 2019

Important Disclaimers
This document has been issued and approved by AIICO Capital and is based on information from various sources that we believe are reliable. However, no representation is made that it is accurate or complete. While reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors or fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer or solicitation to any person to enter into any trading transaction.
Investments discussed in this report may not be suitable for all investors. This report is provided solely for the information of AIICO Capital clients who are then expected to make their own investment decisions. AIICO Capital conducts designated investment business with market counter parties and customers and this document is directed only to such persons. AIICO Capital accepts no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. This report is for private circulation only and may not be reproduced, distributed or published by any recipient for any purpose without prior express consent of AIICO Capital. Users of this report should bear in mind that investments can fluctuate in price and value. Past performance is not necessarily a guide to future performance.
AIICO Capital is regulated by the Securities and Exchange Commission, and is licensed to provide fund and portfolio management services in Nigeria.