Financial Markets Today

Financial Markets Today

Global crude oil prices rose today, with Brent crude oil price gaining ca +1.57% day-on-day at $67.72 per barrel, its highest point in 2019. This comes as data from the U.S. Energy Information Administration (EIA) indicated a sharp week-on-week drop in U.S. Shale inventories of 3.9 million barrels per day and comes as Saudi Arabia, world’s 3rd largest crude oil producer, indicated plans to lower its crude oil output below 10 million barrels per day in the next 2 months, its lowest since April 2018.

 

With the Organisation of Petroleum Exporting Counties (OPEC) expected to further cut production in the first half of 2019, maintaining its current production-cut deal of ca 1.4 million barrels per day till its meeting on 25 – 26 June 2019.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened on a positive note today, at ca ₦192.318bn. There was no OMO auction conducted by the Central Bank of Nigeria (CBN) today.

Treasury Bills
A more active trading day in the treasury bills secondary market today, with expectation of lower stop rates at today’s Primary market Auction (PMA) further increasing demand for maturities, particularly at the long-end of the curve. Average rates lost ca -7bps day-on-day, with the 16 May 2019 maturity traded the most to close at 11.78%. Please find below a summary of the results of today’s PMA auction:

Tenor 91-Day 182-Day 364-Day
Maturity Date: 13-Jun-19 12-Sep-19 12-Mar-20
Amount Offered: ₦ 5.000 billion ₦ 14.002 billion ₦ 70.501 billion
Subscription: ₦ 14.360 billion ₦ 46.467 billion ₦ 539.687 billion
Amount Alloted: ₦ 5.000 billion ₦ 14.002 billion ₦ 70.501 billion
Range of bids: 10.5000%-13.0000% 12.0000%-14.0000% 12.2500%-15.9900%
Stop Rates: 10.7500% 12.5000% 12.8450%

 

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates dropped day-on-day to 9.42% and 10.00% from 9.67% and 10.33%. 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.

Bonds
A relatively more active trading day as well in the bonds secondary market today, with most activities at the long-end of the curve. Average yield lost ca -11bps day-on-day, with the March 2036 maturity trading the most to close at 14.22% from 14.33%.

Eurobonds

Yield levels rose today in the nation’s Eurobond market, after 2 consecutive trading days of active demand. Average yield gained ca +4bps day-on-day, particularly on the November 2047 and January 2049 maturities which gained ca +5bps day-on-day respectively.

Equities
The Nigerian equities market appreciated today, after 5 consecutive trading days of losses, largely on the back of gains in Guaranty Trust Bank Plc (+0.56%) and Nestle Nigeria Plc (+4.72%). The Nigerian Stock Exchange All Share Index (NSE ASI) gained ca +0.15% day-on-day to close at 31,360.28pts, with market’s year-to-date returns at -0.22%.

The NSE Consumer Goods and Banking indices both gained ca +160bps and +4bps respectively while NSE Industrial was down -35bps, the NSE Oil & Gas remained stable. Diamond Bank Plc led the volume chart with 113.60m units while First Bank of Nigeria Holding Plc led the value chart with trades worth ₦586.22bn.

The Naira remained stable against the dollar at the interbank market window today, at ₦306.95/$1. In the parallel market, it remained stable against the Dollar, Pound Sterling and Euro at ₦360/$1, ₦472/₤1 and ₦406/€1 respectively. The Naira appreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦360.05/$1 from ₦360.27/$1.

Crude oil prices rose further today, as data from the Energy Information Administration (EIA) reported a drop of ca 3.9 million barrels in U.S. crude inventories. Brent crude oil price gained ca +1.57% at $67.72pb, while WTI crude gained ca +2.30% at $58.18pb, as at report time. Spot gold gained ca +0.96% day-on-day at $1,310.60 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
CAP 37.40 3.40 +10.00%
STERLNBANK 2.36 0.21 +9.77%
ETERNA 4.80 0.40 +9.09%
CHIPLC 0.29 0.02 +7.41%
LASACO 0.33 0.02 +6.45%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
REGALINS 0.24 -0.02 -7.69%
AFRIPRUD 4.55 -0.37 -7.52%
PRESTIGE 0.50 -0.04 -7.41%
DANGFLOUR 9.50 -0.50 -5.00%
GUINNESS 64.00 -3.15 -4.69%
Benchmark T-Bills Discount Rates
13-Mar-19 12-Mar-19 Change in Rates
78 Days                                    . 11.01% 11.01% 0.00%
141 Days 12.10% 12.17% -0.07%
330 Days 13.00% 13.02% -0.02%
Source: FMDQ DQL for 13 March 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
13-Mar-19 12-Mar-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.83% 14.83% 0.00%
5 yrs: 15.54% 27-Apr 2023 14.36% 14.55% -0.19%
10 yrs: 16.29% 17 Mar 2027 14.37% 14.42% -0.05%
20 yrs: 16.25% 18-Apr 2037    . 14.20% 14.33% -0.13%
Source: FMDQ DQL for 13 March 2019
Benchmark FGN Eurobond Yields
13-Mar-19 12-Mar-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.85% 4.81% 0.04%
5 yrs: NGERIA 6 3/8 07/12/23 5.65% 5.60% 0.05%
10 yrs: NGERIA 6 1/2 11/28/27 6.90% 6.85% 0.05%
20 yrs: NGERIA 7.696 02/23/38 7.95% 7.90% 0.05%
30 yrs: NGERIA 9.248 01/21/49 8.38% 8.34% 0.04%
Source: FMDQ DQL for 13 March 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.28% 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
01-Aug-19 141 11.60% 12.14%
17-Oct-19 218 12.85% 13.92%
07-Nov-19 239 12.75% 13.91%
16-Jan-20 309 12.40% 13.85%

 

Select Macro-economic Indices
Inflation % (January 2019) 11.37 (-0.61% ytd)
PMI (February 2019) 57.10
MPR (%) 14 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 67.72 (+1.57% d/d)
External Reserve (US$’billion) 42.87 (-0.57% ytd)
GDP % (Q4 2018) +2.38% (Q3 2018: +1.81% y/y)
NSE All Share Index (ASI) 31,360.28 (+0.15% d/d; -0.22% ytd)
Market Capitalisation (₦’Trillion) 11.68

Financial Markets Update – 13 March 2019

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