Financial Markets Today

Financial Markets Today

Global equities kicked off the week on a positive note today, with the Dow Jones Industrial Average (DJIA), S&P 500, NASDAQ, London FTSE and French CAC all gaining ca +0.57%, +0.80%, +1.59%, +0.59% and +0.34% respectively. This comes off renewed positive investors optimism of global economic growth with the announcement by the U.S. government of an indefinite suspension of previously planned tariffs on imports from Mexico, which were initially planned to commence today, 10 June.

We expect the rally in global equities to continue in the near term, with investors optimistic of continued calm to trade tensions and possible U.S./China re-start of trade negotiations at this month’s G-20 meeting on 28 – 29 June.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened positive today at ca ₦136.46bn lower than ca ₦584.25bn recorded the previous day. The Central Bank of Nigeria (CBN) did not conduct an Open Market Operation (OMO) auction today.

Treasury Bills
The treasury bills secondary market kicked off the week on a bullish note, buoyed by positive interbank liquidity, market witnessed demand on the short-to-mid end of the curve. Average rates shed ca -18bps day-on-day, with the 29 August 2019 maturity closing at 11.38% from 11.74%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded higher day-on-day at 12.29% and 12.71% from 10.86% and 11.43%, as Banks made provisions for Wholesale FX Interventions. 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
A relatively quiet start to the week in the bonds secondary market today, with few transactions at the short and long end of the curve. Average yields marginally gained ca +2bps day-on-day, with February 2028 maturity trading flat at 14.60%.


Eurobond

The nation’s Eurobonds market kicked off the week on a bullish note today, on continued interest from investors as President Donald Trump announced the suspension of tariffs on Mexican imports. Average yields shed ca -9bps day-on-day with the February 2038 maturity closing at 7.99% from 8.10%.

Equities
The Nigerian equities market commenced the week on a negative note today, with the Nigerian Stock Exchange All Share Index (NSE ASI) marginally shedding ca -0.36% day-on-day to close at 30,322.19pts, and market’s year-to-date returns at -3.53%. This was largely due to losses in MTN Nigeria Plc (-0.37%) and Zenith Bank Plc (-0.49%).

The NSE Banking, Consumer goods, Industrial and Oil & Gas indices all lost ca -10bps, -62bps, -235bps and -21bps respectively. Zenith Bank Plc led the volume and value charts with ca 70.25m units and ca ₦1.42bn respectively.

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 and the Pound sterling at ₦465/₤1, in the parallel market. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate depreciated day-on-day at ₦360.44/$1 from ₦360.41/$1.

Crude oil prices trended lower today, on the back of reports that Saudi Arabia and Russia were yet to agree to extend production cut beyond June 2019. Brent crude oil price lost ca -0.93% day-on-day at $62.70pb, while WTI gained ca -0.31% day-on-day at $53.83pb, as at report time. Spot gold shed ca -1.11% at $1,331.10 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
CHIPLC 0.22 0.02 +10.00%
UAC-PROP 1.65 0.15 +10.00%
SOVRENINS 0.25 0.02 +8.70%
JAPAULOIL 0.27 0.02 +8.00%
FO 26.50 0.75 +2.91%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
CCNN 13.50 -1.50 -10.00%
UNITYBNK 0.63 -0.07 -10.00%
NAHCO 3.06 -0.33 -9.73%
COURTVILLE 0.20 -0.02 -9.09%
CUTIX 1.46 -0.14 -8.75%
Benchmark T-Bills Discount Rates
10-Jun-19 07-Jun-19 Change in Rates
90 Days                                      . 11.43% 12.17% -0.74%
181 Days- 12.42% 12.41% 0.01%
356 Days. 12.38% 12.39% -0.01%
Source: FMDQ DQL for 10 June 2019
Benchmark FGN Bond Yields
10-Jun-19 07-Jun-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.62% 14.64% -0.02%
5 yrs: 15.54% 27-Apr 2023 14.75% 14.54% 0.21%
10 yrs: 13.98% 23 Feb 2027 14.60% 14.60% 0.00%
20 yrs: 16.25% 18-Apr 2037  . 14.50% 14.54% -0.04%
Source: FMDQ DQL for 10 June 2019
Benchmark FGN EuroBond Yields
10-Jun-19 07-Jun-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.63% 4.70% -0.07%
5 yrs: NGERIA 6 3/8 07/12/23 5.44% 5.51% -0.07%
10 yrs: NGERIA 6 1/2 11/28/27 7.09% 7.19% -0.10%
20 yrs: NGERIA 7.696 02/23/38 7.99% 8.10% -0.11%
30 yrs: NGERIA 9.248 01/21/49 8.53% 8.64% -0.11%
Source: FMDQ DQL for 10 April 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 55 10.15% 10.31%
17-Oct-19 132 12.15% 12.71%
07-Nov-19 153 11.80% 12.41%
16-Jan-20 223 12.15% 13.12%
Select Macro-economic Indices
Inflation % (April 2019) 11.37 (+1.07% ytd)
PMI (May 2019) 57.80
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 62.70 (-0.93% d/d)
External Reserve (US$’billion) 45.160 (+1.73% ytd)
GDP % (Q4 2018) +2.01% (Q4 2018: +2.38% y/y)
NSE All Share Index (ASI) 30,322.19 (-0.36% d/d; -3.53% ytd)
Market Capitalisation (₦’Trillion) 13.35

Financial Markets Update – 07 June 2019

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