Global equities market opened on a positive note today, after last week’s volatile session, as U.S. and Chinese officials are set to commence another round of trade negotiations this week. The European Stoxx 600, London’s FTSE, German DAX, French CAC, Chinese SHANGHAI, and U.S. NASDAQ indices all gained ca +0.88%, +0.82%, +0.99%, +1.07%, +1.36% and +0.07% day-on-day. Yields of government treasuries in developed economies also rose on investors’ optimism of positive impact of on-going negotiations, with U.S. 10yr bond, German 10yr bond and UK 10yr bond rising to ca +2.657%, +0.119% and +1.18% respectively.
We do not expect a significant positive impact of current negotiations on prices of risk assets in developed economies, with no immediate closure to the U.S./China trade tensions expected before the deadline date of 31 March 2019. We also expect this to further increase volatility in global financial markets in the near term.
Liquidity in the banking system was to open on a negative today. The Central Bank of Nigeria (CBN) conducted an Open Market Operation (OMO) auction to further tighten system liquidity
A relatively quiet trading day in the treasury bills secondary market, with sell-offs seen particularly on short-dated maturities. The 28 February 2019 maturity traded the most to close at 9.79%, with average rate gaining ca +5ps day-on-day. Please find below a summary of the results of today’s Open Market Operations (OMO) auction:
|Amount Offered:||₦ 5.00billion||₦ 10.00billion||₦ 10.00 billion|
|Subscription:||₦ 2.41billion||₦ 1.08 billion||₦ 34.87 billion|
|Amount Allotted:||₦ 2.41 billion||₦ 1.08 billion||₦ 34.87 billion|
|Range of bids:||11.9000% – 11.9000%||13.5000% – 15.0000%||15.0000% – 15.0000%|
Open Buy Back (OBB) and Overnight (O/N) rates rose to 43.33% and 47.50% from 18.67% and 19.42%. 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 relatively quiet trading day in the bonds secondary market today, with activities majorly at the mid-end of the curve. The February 2028 maturity traded the most to close at 14.78% with average yields dropping ca -5bps day-on-day.
The Nigerian equities market opened the first trading day of the week on a positive note, appreciating for a 7th consecutive trading day, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained ca +0.80% day-on-day to close at 31,781.87pts, with market’s year-to-date returns at +1.12%. This was on the back of gains in highly capitalized as Guaranty Trust Bank Plc (+0.52%), Zenith Bank Plc (+2.25%) and Stanbic IBTC Holding Plc (+2.13%).
The NSE Oil & Gas, Industrial, Consumer Goods and Banking indices all gained ca +58bps, +31bps, +42bps and +190bps respectively day-onday. United Bank for Africa Plc led both the volume and value charts with 101.62m traded at ₦1.15bn.
The Naira remained stable against the dollar at the interbank market window today, at ₦306.70/$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 appreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦361.38/$1 from ₦361.54/$1
Crude oil prices declined today, on rising investors’ concerns over renewed U.S./China trade talks after an initial round of talks failed to yield significant positive results. Brent crude oil price lost ca +0.40% at $61.85pb, while WTI crude was down ca -0.47% at $52.47pb, as at report time. Spot gold was down ca -0.50% day-on-day at $1,311.80 per ounce.
|AIICO Money Market Fund (AMMF)|
|Net Yield (As at current date)||13.22% per annum|
|Added Benefit||Personal accident insurance cover|
|AIICO Capital Guaranteed Income Note (GIN) Rates p.a.|
|Amount (NGN)||30 Days||60 Days||90 Days||180 Days||364 Days|
|10,000,001 – 50,000,000||10.00||10.50||11.00||12.00||13.00|
|50,000,001 – 100,000,000||11.00||11.25||11.50||12.50||14.00|
|100,000,001 – 400,000,000||12.00||12.25||12.50||13.00||14.50|
|Trading Treasury Bills Rates p.a.|
|Maturity Dates||Tenor (Days)||Discount Rate||Effective Yield|
|Select Macro-economic Indices|
|Inflation % (December 2018)||11.44 (-25.57% ytd)|
|PMI (January 2019)||58.50|
|MPR (%)||14 (-5%/+2% around mid-point)|
|Brent Crude Price US$ pbbl||61.85 (-0.40% d/d)|
|External Reserve (US$’billion)||43.17 (+0.11% ytd)|
|GDP % (Q3 2018)||+1.81% (Q2 2018: +1.50% y/y)|
|NSE All Share Index (ASI)||31,781.87 (+0.80% d/d; +1.12% ytd)|
|Market Capitalisation (₦’Trillion)||11.85|