Financial Markets Today

Financial Markets Today

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

Global crude oil prices declined sharply today, with Brent crude oil price dropping ca -3% day-on-day at $59.57 per barrel as U.S. energy firms added new oil Shale rigs, the first additions since December 2018. This comes as earnings data from Chinese industrial firms declined for a 2nd consecutive month in December 2018, further increasing fears of global economic slowdown in 2019, and despite multiple fiscal stimulus by the Chinese government to boost economic activities in the world’s 2nd largest economy. Global equities markets also declined today, with most benchmark indices losing points on investors rising fears of continued global economic growth uncertainties.

With the U.S. and China set to hold the 2nd round of trade talks since the start of 2019, this week and as the U.S. Federal Reserve holding 1st meeting of 2019 on 29 – 30 January, we expect continued volatility in the global financial markets.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Liquidity in the banking system opened on a positive note today, at ca ₦67.2bn. In line with its tight monetary policy, the Central Bank of Nigeria (CBN) conducted an Open Market Operation (OMO) auction today.

Treasury Bills
Liquidity in the banking system opened on a positive note today, at ca ₦67.2bn. In line with its tight monetary policy, the Central Bank of Nigeria (CBN) conducted an Open Market Operation (OMO) auction today.

Tenor 87-Days 192-Days 360-Days
Maturity Date: 25-Apr-19 08-Aug-19 23-Jan-20
Amount Offered: ₦ 20.00billion ₦ 30.00billion ₦ 70.00billion
Subscription: ₦ 2.33billion ₦ 6.27billion ₦ 48.30billion
Amount Allotted: ₦ 2.33billion ₦ 6.27billion ₦ 48.30billion
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 rose to 16.07% and 17.31% from 12.08% and 13.00%. 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
A relatively more active trading day in the bonds secondary market today, with interest seen particularly on long-dated maturities. Average yields gained ca +6bps day-on-day, with the March 2036 maturity trading the most to close at 15.19%.

Equities
The Nigerian equities market declined today, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost ca -0.26% day-on-day to close at 31,344.24pts, with market’s year-to-date returns at -0.27%. This was majorly due price depreciation in Guaranty Trust Bank Plc (-0.72%) and Seplat Petroleum Development Company Plc (-3.70%).

The NSE Oil & Gas, Banking and Industrial indices gained ca +168bps, +410bps and +49bps day-on-day, the NSE Consumer Goods index lost ca -14bps. Fidelity Bank Plc led the volume chart with 23.77m units while Guaranty Trust Bank Plc led the value chart with trades worth ₦487.92mn.

The Naira remained stable against the dollar at the interbank market window today, at ₦306.80/$1. In the parallel market, it appreciated against the Dollar and Euro at ₦363/$1 and ₦411/€1 from ₦364/$1 and ₦412/€1 respectively while depreciating against the Pound Sterling at ₦470/₤1 from ₦467₤1. The Naira remained stable at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦362.12/$1.

Crude oil prices declined today, as U.S. oil exploration companies added new rigs, for the first time in 2019, further increasing fears of global crude oil over supply. Brent crude oil price dropped ca -3.36% at $59.57pb, while WTI crude also lost ca -4.38% at $51.3pb, as at report time. Spot gold was down ca +0.31% day-on-day at $1,302.10 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
NPFMCRFBK 1.60 0.14 +9.59%
UNIONDAC 0.29 0.02 +7.41%
OANDO 5.10 0.25 +5.15%
UPL 2.10 0.10 +5.00%
TOTAL 223.30 8.80 +4.10%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
BERGER 7.00 -0.75 -9.68%
CHIPLC 0.32 -0.03 -8.57%
MCNICHOLS 0.36 -0.03 -7.69%
AGLEVENT 0.29 -0.02 -6.45%
ROYALEX 0.29 -0.02 -6.45%
Benchmark T-Bills Discount Rates
28-Jan-19 25-Jan-19 Change in Rates
66Days 13.22% 12.99% 0.23%
171Days 13.41% 13.30% 0.11%
318Days 14.89% 14.91% -0.02%
Source: FMDQ DQL for 28 January 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
28-Jan-19 25-Jan-19 Change in Yield
3 yrs: 16.00% 29-Jun 2019 14.04% 13.97% 0.07%
5 yrs: 15.54% 13-Feb 2020 15.41% 15.52% -0.11%
10 yrs: 16.29% 17 Mar 2027 15.14% 15.14% 0.00%
20 yrs: 16.25% 18-Apr 2037 15.09% 15.17% -0.08%
Source: FMDQ DQL for 28 January 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.09% 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
14-Feb-19 17 12.20% 12.27%
21-Mar-19 52 10.55% 10.71%
01-Aug-19 185 12.95% 13.86%
07-Nov-19 283 14.35% 16.15%

 

Select Macro-economic Indices
Inflation % (December 2018) 11.44 (-25.57% ytd)
PMI (December 2018) 61.10
MPR (%) MPR (%) 14 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 59.57 (-3.36% d/d)
External Reserve (US$’billion) 43.11 (-0.01% ytd)
GDP % (Q3 2018) +1.81% (Q2 2018: +1.50% y/y)
NSE All Share Index (ASI) 31,344.24 (-0.26% d/d; -0.27% ytd)
Market Capitalisation (₦’Trillion) 11.69

Financial Markets Update – 28 January 2019

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