All of us at AIICO Capital wish you all the Happiness in the New Year.
Equities indices appreciated today, after a very quiet uncertain opening, as the U.S. Federal Reserve bank agreed to hold its benchmark interest rate at 2.25% – 2.50% and indicating a more accommodative monetary stance. The U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ and FTSE all rose ca +1.70%, +1.54%, +1.99% and +1.58% respectively. This comes as the U.S. and China commenced its trade negotiations meeting today, with declining optimism of reaching a positive conclusion. We expect this to spur more positive momentum in the global equities markets this week. However, we expect continued volatility in global financial markets in Q1 2019, with investors interest expected to remain focused in safe-haven investments of developed economies.
Liquidity in the banking system was expected to open positive today. There was no Open Market Operation (OMO) auction conducted by the Central Bank of Nigeria (CBN) today.
Another quiet trading day in the treasury bills secondary market. Average rate lost ca -2ps day-on-day, with the 07 February 2019 maturity trading the most to close at 12.97%. Pease find below a summary of the results of today’s Primary Market (PMA) auction:
|Amount Offered:||₦ 7.851billion||₦ 69.565billion||₦ 177.219billion|
|Subscription:||₦ 41.045billion||₦ 58.684billion||₦214.384billion|
|Amount Allotted:||₦ 21.018billion||₦ 12.25billion||₦ 167.932billion|
|Range of bids:||10.8500% – 12.0000%||12.8500% – 14.5000%||14.3000% – 18.0000%|
Open Buy Back (OBB) and Overnight (O/N) rates dropped to 3.83% and 4.50% from 10.17% and 10.83%. 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 very quiet trading day in the bonds secondary market today, with very few activities across the curve and with investors focus majorly on the bonds primary auction. Average yields declined ca -7bps day-on-day, with the March 2036 maturity trading the most to close at 15.12% from 15.19%. Pease find below a summary of the results of today’s bonds Primary Market (PMA) auction:
|S/N||AUCTION DATE||MATURITY DATE||AMOUNT OFFERED(NGN)||AMOUNT ALLOTED (NGN)||MARGINAL RATE|
The Nigerian equities market declined for a 3rd consecutive trading day, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost ca -0.11% day-on-day to close at 31,145.34pts, with market’s year-to-date returns at -0.91%. This was majorly due to price depreciation in Nestle Nigeria Plc (-0.69%) and Guinness Nigeria Plc (-8.45%).
The NSE Banking, Oil & Gas and Industrial indices gained ca +10bps, +140bps and +23bps day-on-day, while the NSE Consumer Goods index declined -76bps. Zenith Bank Plc led both the volume and value charts with 56.3m units traded at ₦1.30bn.
The Naira remained stable against the dollar at the interbank market window today, at ₦306.75/$1. In the parallel market, it remained stable against the Dollar and Euro at ₦363/$1 and ₦411/€1 respectively, and appreciated against the Pound Sterling at ₦469/₤1 from ₦470/₤1. The Naira depreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦362.68/$1 from ₦362.42/$1.
Crude oil prices rose further today, on continued concerns of the impact of U.S. imposed sanctions on Venezuela, and as U.S. crude oil inventories rose 919,000 barrels weekon-week vs analyst expectation of 3.2 million barrels. Brent crude oil price rose ca +1.66% at $62.34pb, while WTI crude also gained ca +2.66% at $54.73pb, as at report time. Spot gold was up ca +0.08% day-on-day at $1,316.20 per ounce.
|AIICO Money Market Fund (AMMF)|
|Net Yield (As at current date)||13.15% per annum|
|Added Benefit||Personal accident insurance cover|
|AIICO Capital Guaranteed Income Note (GIN) Rates p.a.|
|Amount (NGN)||30 Days||60 Days||90 Days||180 Days||364 Days|
|10,000,001 – 50,000,000||10.00||10.50||11.00||12.00||13.00|
|50,000,001 – 100,000,000||11.00||11.25||11.50||12.50||14.00|
|100,000,001 – 400,000,000||12.00||12.25||12.50||13.00||14.50|
|Trading Treasury Bills Rates p.a.|
|Maturity Dates||Tenor (Days)||Discount Rate||Effective Yield|
|Select Macro-economic Indices|
|Inflation % (December 2018)||11.44 (-25.57% ytd)|
|PMI (December 2018)||61.10|
|MPR (%)||14 (-5%/+2% around mid-point)|
|Brent Crude Price US$ pbbl||62.34 (+1.66% d/d)|
|External Reserve (US$’billion)||43.16 (+0.11% ytd)|
|GDP % (Q3 2018)||+1.81% (Q2 2018: +1.50% y/y)|
|NSE All Share Index (ASI)||31,145.34 (-0.11% d/d; -0.91% ytd)|
|Market Capitalisation (₦’Trillion)||11.61|