Financial Markets Today

All of us at AIICO Capital wish you all the Happiness in the New Year.

Global equity indices appreciated further today, buoyed by early reports that current U.S./China trade negotiations were yielding positive results with the identification of focus areas for trade improvement, including purchase of U.S. goods and services. The U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ, German DAX, London FTSE and Japanese NIKKEI all appreciated for a 3rd consecutive trading day, gaining ca +0.95%, +0.64%, +0.70%, +0.52%, +0.74% and +0.82% respectively.
We remain positive in the short term, of the impact of current trade talks on global economic growth in financial markets in 2019, with the U.S./China trade talks expected to continue tomorrow. However, investors uncertainties in global financial markets is expected to raise financial markets’ volatility in 2019.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity was expected to open on a positive note today. In line with the tight monetary stance of the Central Bank of Nigeria (CBN), there was an Open Market Operations (OMO) auction conducted today.

Treasury Bills
A bearish trading day in the treasury bills secondary market today, with sell-offs seen particularly at the short-end of the curve. Average rate gained ca +7bps day-on-day, with the 17 and 24 January 2019 maturity trading the most to close at 15.64% from 15.85%. Please find below the results of the Open Market Operations (OMO) auction held today

Tenor	107-Days	170-Days	317-Days
Maturity Date:	25-Apr-19	27-Jun-19	21-Nov-19
Amount Offered:	₦ 10.00 billion	₦ 20.00 billion	₦ 30.00 billion
Subscription:	₦ 0.0157 billion	₦ 0.7615 billion	₦ 9.95 billion
Amount Allotted:	₦ 0.0157 billion	₦ 0.7615 billion	₦ 9.95 billion
Range of bids:	11.9000% – 11.9000%	13.5000% – 15.0000%	15.0000% – 15.0000%
Stop Rates	11.9000%	13.5000%	15.0000%

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates dropped to 25.00% and 27.25% from 25.83% and 28.00% 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 remained quiet with light demand seen at the mid-to-long end of the curve. Average yields remained stable day-on-day, with the July 2034 maturity trading the most to close at 15.20%.

Equities
The Nigerian equities market declined further today, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost ca -1.20% day-on-day to close at 30,036.15pts, with market’s year-to-date returns at -4.44%. This was mainly due to price depreciation in Guaranty Trust Bank Plc (-5.47%), Zenith Bank Plc (-4.69%) and Stanbic IBTC Holding Plc (-1.81%).

The NSE Consumer Goods, Oil & Gas and Banking indices all lost ca -47bps, -145bps, and -357bps respectively, while NSE Industrial index gained ca +53bps. Zenith Bank Plc led both the volume and value charts with 32.84m units traded at ₦679.77mn.

The Naira remained stable against the dollar at the interbank market window today, at ₦306.90/$1. In the parallel market, it remained stable against the Dollar, Pound Sterling and Euro at ₦361/$1, ₦460/₤1 and ₦410/€1 respectively. The Naira depreciated further at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦365.17/$1 from ₦365.09/$1.

Crude oil prices rose for a 6th consecutive trading day, as investors remain optimistic of a positive outcome of U.S./China trade talks
closing today. Brent crude oil price gained +2.42% at $58.72pb, while WTI crude appreciated by ca +2.72% at $49.84pb, as at report time.
Spot gold gained ca -0.36% day-on-day at $1,285.30 per ounce.

Top 5 Equitiy Advancers
Name (Symbol)	Closing Price	Gain(N)	% Change
JOHNHOLT	0.48	0.04	+9.09%
OKOMUOIL	83.75	6.15	+7.93%
UBN	6.00	0.20	+3.45%
WAPCO	11.70	0.35	+3.08%
HONYFLOUR	1.14	0.03	+2.70%

Top 5 Equity Decliners
Name (Symbol)	Closing Price	Gain(N)	% Change
NEM	2.12	-0.22	-9.40%
NNFM	4.35	-0.45	-9.38%
WAPIC	0.40	-0.04	-9.09%
UNITYBNK	0.91	-0.09	–9.00%
AIICO	0.62	-0.06	-8.82%

Benchmark T-Bills Discount Rates
	08-Jan-19	07-Jan-19	Change in Rates
72 Days	14.13%	13.77%	0.36%
142 Days	13.22%	13.22%	0.00%
317 Days	14.79%	14.80%	-0.01%
Source: FMDQ DQL for 08 January 2019 *T-Bills Discount Rates are slightly different from current market rates

Benchmark FGN Bond Yields
	08-Jan-19	07-Jan-19	Change in Yield
3 yrs: 16.00% 29-Jun 2019	14.18%	14.15%	0.03%
5 yrs: 15.54% 13-Feb 2020	15.15%	15.15%	0.00%
10 yrs: 16.29% 17 Mar 2027	15.43%	15.55%	-0.12%
20 yrs: 16.25% 18-Apr 2037	15.20%	15.20%	0.00%
Source: FMDQ DQL for 08 January 2019

AIICO Money Market Fund (AMMF)
Net Yield (As at current date)	13.13% 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
24-Jan-19	16	14.75%	14.85%
14-Feb-19	37	14.00%	14.20%
21-Mar-19	72	13.55%	13.92%
07-Nov-19	303	14.35%	16.29%

Select Macro-economic Indices
Inflation % (November 2018)	11.28 (-26.61% ytd)
PMI (December 2018)	61.10
MPR (%)	14 (-5/+2 around mid-point)
CRR (%)	22.5
Brent Crude Price US$ pbbl	58.72 (+2.42% d/d)
External Reserve (US$’billion)	43.04 (-0.18% ytd)
GDP % (Q3 2018)	+1.81% (Q2 2018: +1.50% y/y)
NSE All Share Index (ASI)	30,036.15 (-1.20% d/d; -4.44% ytd)
Market Capitalisation (₦’Trillion)	11.20