All of us at AIICO Capital wish you all the Happiness in the New Year.
Global equities market declined today, after 5 consecutive days of gains, on rising investors’ fears and the return of uncertainties around China’s economic growth and U.S. government partial shutdown which entered its 21st day. Investors took profit on gains made as the U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ, German DAX, London’s FTSE and French CAC all lost ca -0.37%, -0.31%, -0.45%, -0.31%, -0.36% and -0.51% respectively. Renewed interest in safe-haven debt instruments of developed economies pulled down yields on treasury bonds with the 10yr U.S. bond yield, 10yr Japanese bond yield and 10yr UK bond yield all dropped to ca +2.697%, +0.008% and +1.286% respectively.
We expect current global financial markets volatility to continue in Q1, particularly on rising global uncertainties and continued uncertainties of recently concluded U.S./China trade talks. We also expect the high volatility of Brent crude oil price to further increase investors uncertainties of global economic growth in 2019.
Liquidity in the banking system opened negative today, at ca -₦95.63bn. There was no Open Market Operations(OMO) conducted gy the Central Bank of Nigeria(CBN).
A relatively active trading day in the treasury bills secondary market today, with demand seen on short-dated maturities. Average rate dropped ca -4bps day-on-day, with the 31 January 2019 maturity trading the most to close at 14.81% from 15.45%.
Open Buy Back (OBB) and Overnight (O/N) rates dropped to 22.00% and 22.50% from 22.67% and 24.67% respectively. 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.
The bonds secondary market ended the trading day on a bullish note after opening with light selloffs seen on several maturities. Average yields dropped ca -12bps day-on-day, with the March 2027 maturity trading the most to close at 15.38% from 15.39%.
The Nigerian equities market appreciated for a 2nd consecutive trading day, as the Nigerian Stock Exchange All Share Index (NSE ASI) gained ca +1.06% day-on-day to close at 29,830.70pts, with market’s year-to-date returns at -5.09%. This was due to price appreciation in highly capitalized stocks as Dangote Cement Plc (+3.21%), Guaranty Trust Bank Plc (+0.90%) and Zenith Bank Plc (+1.16%).
The NSE Banking, Consumer Goods and Industrial indices both gained ca +125bps, +16bps and +269bps respectively, while NSE Oil and Gas index lost ca -447bps. Diamond Bank Plc led the volume chart with 30.41m units while Dangote Cement Plc led the value chart with trades worth ₦697.18mn.
The Naira remained stable against the dollar at the interbank market window today, at ₦306.90/$1. In the parallel market, it depreciated against the Dollar at ₦363/$1 from ₦362/$1, and remained stable against the Pound Sterling and Euro at ₦460/₤1 and ₦410/€1, respectively. The Naira appreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦364.72/$1 from ₦364.84/$1.
Crude oil prices dropped for a 2nd consecutive trading day, as investors continued profit taking after a 9-day rally that pushed Brent crude price above $61 per barrel. Brent crude oil price lost ca -2.14% at $60.36pb, while WTI crude was down ca -2.06% at $51.49pb, as at report time. Spot gold gained ca +0.26% day-on-day at $1,290.80 per ounce.
|AIICO Money Market Fund (AMMF)|
|Net Yield (As at current date)||12.98% per annum|
|Added Benefit||Personal accident insurance cover|
|AIICO Capital Guaranteed Income Note (GIN) Rates p.a.|
|Amount (NGN)||30 Days||60 Days||90 Days||180 Days||364 Days|
|10,000,001 – 50,000,000||10.00||10.50||11.00||12.00||13.00|
|50,000,001 – 100,000,000||11.00||11.25||11.50||12.50||14.00|
|100,000,001 – 400,000,000||12.00||12.25||12.50||13.00||14.50|
|Trading Treasury Bills Rates p.a.|
|Maturity Dates||Tenor (Days)||Discount Rate||Effective Yield|
|Select Macro-economic Indices|
|Inflation % (November 2018)||11.28 (-26.61% ytd)|
|PMI (December 2018)||61.10|
|MPR (%)||14 (-5%/+2% around mid-point)|
|Brent Crude Price US$ pbbl||60.36 (-2.14% d/d)|
|External Reserve (US$’bi l l ion)||43.05 (-0.16% ytd)|
|GDP % (Q3 2018)||+1.81% (Q2 2018: +1.50% y/y)|
|NSE Al l Share Index (ASI)||29,830.70 (+1.06% d/d; -5.09% ytd)|
|Market Capi tal i s ati on (₦’Tri l l i on)||11.12|