Financial Markets Today

Financial Markets Today

Global equities market depreciated to lowest in 3-months today, with most global equity benchmark indices losing day-on-day, on continued rise in risk-off sentiments of investors. The U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ, German DAX, London’s FTSE and Chinese SHANGHAI indices all shed ca -1.20%, -1.25%, -1.45%, -1.47%, -0.78% and -0.24% respectively, with increased demand for safe-haven government treasuries of Developed Economies (DMs). This comes as new Chinese tariffs of up to 25% on ca $60 billion worth of imports from the U.S. came into effect today – U.S. trading time, with the U.S. set to commence collection of increased 25% tariffs on ca $200 billion of Chinese imports tomorrow, 01 June, further escalating current global trade tensions, risk-off sentiments and fears of a bigger slowdown in global economic growth in 2019, than earlier forecasted.

With continued uncertainties of a resolution to global trade tensions, recent sanctions on Mexico and increasing risk-off sentiments of Emerging Markets (EMs), we expect investors interest and demand for safe-haven assets to surge in the near term.





Banking system liquidity opened positive today at ca ₦418.93bn higher than ca ₦292.7bn recorded yesterday, on refunds from the Retail FX interventions. The Central Bank of Nigeria (CBN) did not conduct an Open Market Operation (OMO) auction today.

Treasury Bills
A bearish end to the week in the treasury bills secondary market today, as traders closed their books for month end. Despite positive interbank liquidity, there were sell offs on many papers as market anticipated an OMO auction by the CBN. Average rates marginally gained ca +2bps day-on-day, with the 29 August 2019 maturity closing at 10.51% from 10.34%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded lower day-on-day at 4.14% and 4.93% from 5.86% and 6.50%, with improved interbank liquidity. 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.

A relatively quiet end to the week in the bonds secondary market today, with demand on the short-to-mid dated maturities, particularly the July 2021 maturity. Average yields shed ca -6bps day-on-day, with July 2021 maturity closing at 13.91% from 14.71%.


The nation’s Eurobonds market traded bearish today with sell offs across the curve, as investors exited emerging markets for safe-haven assets. This comes off the back of rising trade tensions between the U.S. and Mexico, which is in addition to on-going trade war between U.S. and China. Average yields rose ca +15bps day-on-day with the January 2049 maturity closing at 8.94% from 8.73%.


The Nigerian equities market ended negative today, with the Nigerian Stock Exchange All Share Index (NSE ASI) shedding ca -0.59% day-on-day to close at 31,069.37pts, with the market’s year-to-date returns at -1.15%. This was largely due to losses in Stanbic IBTC Bank Plc (-2.33%), Zenith Bank Plc (-2.19%) and Guaranty Trust Bank Plc (-1.25%).

The NSE Banking, Consumer goods and Oil & Gas indices all lost ca -173bps, -105bps, and -106bps respectively while the Industrial index gained ca +32bps. United Bank for Africa Plc led the volume chart with 43.97m and Guaranty Trust Bank Plc led the value chart with ca ₦814.29bn worth of trades.

The Naira remained flat against the dollar in both the interbank and parallel markets at ₦306.90/$1 and ₦361/$1 respectively. It depreciated against the Euro at ₦402/€1 from ₦401/€1 but was stable against the Pound sterling at ₦465/₤1, in the parallel market. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate appreciated day-on-day at ₦360.43/$1 from ₦360.47/$1.

Crude oil prices dropped their largest in 6-months today, on the back of fresh trade worries as U.S. President – Donald Trump announced 5% tariffs on Mexico imports and as both U.S. and China are set to commence implantation of new increased tariffs on imports from each other. Brent crude oil price shed ca -7.30% day-on-day at $61.99pb, while WTI shed ca -6.05% day-on-day at $53.36pb, as at report time. Spot gold gained ca +1.34% at $1,309.70 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
MANSARD 1.98 0.18 +10.00%
LEARNAFRCA 1.34 0.12 +9.84%
CCNN 15.00 1.00 +7.14%
DANGFLOUR 16.85 0.85 +5.31%
COURTVILLE 0.24 0.01 +4.35%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
OANDO 4.20 -0.45 -9.68%
CHAMPION 1.01 -0.09 -8.18%
WAPCO 10.10 -0.60 -5.61%
UBA 6.25 -0.35 -5.30%
FIDELITYBK 1.68 -0.08 -4.55%
Benchmark T-Bills Discount Rates
31-May-19 30-May-19 Change in Rates
90 Days 10.51% 10.34% 0.17%
181 Days 11.45% 11.34% 0.11%
335 Days. 11.55% 11.55% 0.00%
Source: FMDQ DQL for 31 May 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
31-May-19 30-May-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 13.91% 14.71% -0.80%
5 yrs: 15.54% 27-Apr 2023 14.33% 14.33% 0.00%
10 yrs: 13.98% 23 Feb 2028 14.35% 14.37% -0.02%
20 yrs: 16.25% 18-Apr 2037  . 14.51% 14.45% 0.06%
Source: FMDQ DQL for 31 May 2019
Benchmark FGN EuroBond Yields
31-May-19 30-May-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.94% 4.88% 0.10%
5 yrs: NGERIA 6 3/8 07/12/23 5.70% 5.57% 0.13%
10 yrs: NGERIA 6 1/2 11/28/27 7.37% 7.19% 0.18%
20 yrs: NGERIA 7.696 02/23/38 8.35% 8.19% 0.16%
30 yrs: NGERIA 9.248 01/21/49 8.94% 8.73% 0.21%
Source: FMDQ DQL for 31 May 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.23% 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 62 9.20% 9.35%
17-Oct-19 139 11.30% 11.81%
07-Nov-19 160 11.20% 11.78%
16-Jan-20 230 11.45% 12.34%
Select Macro-economic Indices
Inflation % (March 2019) 11.37 (+1.07% ytd)
PMI (April 2019) 57.80
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 61.99 (-7.30% d/d)
External Reserve (US$’billion) 45.109 (+1.95% ytd)
GDP % (Q4 2018) +2.01% (Q3 2018: +2.38% y/y)
NSE All Share Index (ASI) 31,069.37 (-0.59% d/d; -1.15% ytd)
Market Capitalisation (₦’Trillion) 13.68

Financial Markets Update – 09 May 2019

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