Global financial markets rallied today, on rising optimism of U.S. and China closing on a trade deal as the U.S. President – Donald Trump, indicated a possible push back of deadline date if both sides were close to reaching a trade deal before the deadline date. The U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ, German DAX, London’s FTSE and Chinese SHANGHAI indices gained ca +0.25%, +0.17%, +0.13%, +0.37%, +0.81% and +1.84% respectively. Crude oil prices also gained with Brent crude oil price rising ca 2% day-on-day
at ca $63.99 per barrel.
We expect global financial markets to remain volatile in the near term on continued expectation of slowdown in global economic growth, despite current optimistic sentiments of U.S./China trade negotiations.
Banking system liquidity was expected to open on a negative note today. There was Open Market Operation (OMO) auction conducted by the Central Bank of Nigeria (CBN) today.
The bearish trend from yesterday continued in the treasury bills secondary market today. Sell-offs was seen particularly on short-dated maturities, with average rate gaining ca +5bps day-on-day. The 28 February maturity traded the most to close at 10.27%. Please find below a summary of the results of today’s Primary Market Auction (PMA):
|Amount Offered:||₦ 3.384billion||₦ 10.000billion||₦ 140.000 billion|
|Subscription:||₦ 11.577 billion||₦ 22.114billion||₦ 404.892billion|
|Amount Allotted:||₦ 3.384 billion||₦ 10.000 billion||₦ 140.000 billion|
|Range of bids:||10.8000% – 12.5000%||12.0000% – 13.5000%||14.8000% – 16.5237%|
Open Buy Back (OBB) and Overnight (O/N) rates dropped to 20.00% and 23.17% from 24.17% and 27.50%. Average fixed deposit rates amongst banks monitored showed:
– tier-1 rated banks at 3.50% for 30 – 60 days tenor on ₦10mln – ₦100mln.
– tier-2 rated banks at 8.00% for 30 – 60 days tenor on ₦10mln – ₦100mln.
A very quiet trading day in the bonds secondary market today, with activities seen at the mid-end of the curve. Average yield gained ca +44bps day-on-day with the March 2024 maturity trading the most to close at 14.59%.
The Nigerian equities market declined today, after 8 consecutive trading days, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost ca -0.15% day-on-day to close at 32,413.92pts, with market’s year-to-date returns at +3.13%. This was majorly due to depreciation in prices of Guaranty Trust Bank Plc (-2.57%) and Zenith Bank Plc (-0.40%).
The NSE Oil & Gas and Banking indices lost ca -224bps and -179bps respectively, while the NSE Industrial and Consumer Goods indices gained ca +161bps and +89bps. Diamond Bank Plc led the volume chart with 131m units while Zenith Bank Plc led the value chart with ₦1.10bn worth of trade.
The Naira remained stable against the dollar at the interbank market window today, at ₦306.75/$1. In the parallel market, it also remained stable against the Dollar, Pound Sterling and Euro at ₦361/$1, ₦473/₤1 and ₦411/€1 respectively. The Naira depreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦361.58/$1 from ₦361.38/$1.
Crude oil prices gained further today, on continued positive impact of yesterday’s reports of output cuts by the Organisation of Exporting Countries (OPEC) in January, despite rising U.S. stockpiles. Brent crude oil price gained ca +1.99% at $63.66pb, while WTI crude rose ca +2.03% at $54.18pb, as at report time. Spot gold rose ca +0.09% day-on-day at $1,315.20 per ounce.
|AIICO Money Market Fund (AMMF)|
|Net Yield (As at current date)||13.22% per annum|
|Added Benefit||Personal accident insurance cover|
|AIICO Capital Guaranteed Income Note (GIN) Rates p.a.|
|Amount (NGN)||30 Days||60 Days||90 Days||180 Days||364 Days|
|10,000,001 – 50,000,000||10.00||10.50||11.00||12.00||13.00|
|50,000,001 – 100,000,000||11.00||11.25||11.50||12.50||14.00|
|100,000,001 – 400,000,000||12.00||12.25||12.50||13.00||14.50|
|Trading Treasury Bills Rates p.a.|
|Maturity Dates||Tenor (Days)||Discount Rate||Effective Yield|
|Select Macro-economic Indices|
|Inflation % (December 2018)||11.44 (-25.57% ytd)|
|PMI (January 2019)||58.50|
|MPR (%)||14 (-5%/+2% around mid-point)|
|Brent Crude Price US$ pbbl||63.66 (+1.99% d/d)|
|External Reserve (US$’billion)||42.91 (-0.48% ytd)|
|GDP % (Q4 2018)||+2.38% (Q3 2018: +1.81% y/y)|
|NSE All Share Index (ASI)||32,413.92 (-0.15% d/d; +3.13% ytd)|
|Market Capitalisation (₦’Trillion)||12.09|