Financial Markets Today

Crude oil prices surged more than 2% today, after reports of attacks on two oil tanker ships off the coast of Iran. While the source of attacks isn’t clear at the moment, the attacks come at a time of heightend tensions between U.S. and Iran; Crude oil prices saw a sharp reversal from previous day’s levels after market reacted to an increase in U.S stockpiles.

We do not expect the gain in oil price to be sustained, despite best efforts of OPEC and its allies to extend their production cut beyond June 2019; as the United States of America continue ramp up its production stockpile.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened positive today at ca ₦216.29bn lower than ca ₦252.60bn recorded the previous day. The Central Bank of Nigeria (CBN) did not conduct an Open Market Operation (OMO) auction today, due to the Treasury bills primary auction.

Treasury Bills
The treasury bills secondary market closed on a bullish note today, with positive interbank liquidity fuelled by OMO maturities of ca 126bn. There was demand on the short-to-mid dated maturities, as average rates shed ca -6bps day-on-day, with the 26 December 2019 maturity closing at 11.89% from 11.98%. Please find below, result of todays primary market auction (PMA):

Tenor	91-Days	182-Days	364-Days
Maturity Date:	12-Sep-19	12-Dec-19	11-Jun-20
Amount Offered:	₦15.000 billion	₦30.000 billion	₦84.640 billion
Subscription	₦15.200 billion	₦39.023 billion	₦210.809 billion
Amount Allotted:	₦15.000 billion	₦30.000 billion	₦84.640 billion
Range of bids	9.6500% – 12.1500%	11.1900% – 12.6640%	11.7800% – 15.0000%
Stop Rate	10.0000%	11.9499%	12.3400%

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded lower day-on-day at 5.43% and 5.71% from 8.71% and 9.50%, buoyed by maturing OMO of ca 126bn. 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
Bearish sentiments in a rather quiet session in the bonds secondary market today, with few transactions at the short and long end of the curve. Average yields gained ca +4bps day-on-day, with February 2028 maturity closing at 14.70% from 14.63%.

Eurobond

A relatively quiet day in the nation’s Eurobonds market today, with some sell off across the curve despite crude oil prices jumping nearly 2%. Average yields gained ca +7bps day-on-day, with the January 2049 maturity closing at 8.70% from 8.63%.

Equities
The Nigerian equities market continued on a negative note again today, with the Nigerian Stock Exchange All Share Index (NSE ASI) marginally shedding ca -0.23% day-on-day to close at 30,029.15pts, and market’s year-to-date returns at -4.46%. This was largely due to losses in Zenith Bank Plc (-0.25%) and Dangote Cement Plc (-1.08%).

The NSE Banking, Consumer goods and Oil & Gas indices marninally gained ca +9bps, +2bps and +22bps respectively, while the Industrial index shed ca -55bps. Guaranty Trust Bank Plc led both the volume and value charts with 78.30mn and ca ₦2.41bn respectively.

The Naira remained flat against the dollar in both the interbank and parallel markets at ₦307/$1 and ₦361/$1 respectively. It also remained stable against the Euro at ₦402/€1 and appreciated against the Pound sterling at ₦462/₤1 from ₦463/₤1, in the parallel market. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate remained flat day-on-day at ₦360.46/$1.

Crude oil prices surged today, on the back of reports of an attack on two oil tanker ships off the coast of Iran. Brent crude oil price gained ca +2.25% day-on-day at $61.32pb, while WTI gained ca +2.42% day-on-day at $52.37pb, as at report time. Spot gold gained ca +0.591% at $1,344.70 per ounce.

Top 5 Equitiy Advancers
Name (Symbol)	Closing Price	Gain(N)	% Change
GLAXOSMITH	8.35	0.70	+9.15%
MAYBAKER	2.35	0.14	+6.33%
MBENEFIT	0.21	0.01	+5.00%
UCAP	2.30	0.08	+3.60%
AFRIPRUD	3.49	0.08	+2.35%

Top 5 Equity Decliners
Name (Symbol)	Closing Price	Gain(N)	% Change
CILEASING	6.30	-0.69	-9.87%
NPFMCRFBK	1.30	-0.14	-9.72%
UAC-PROP	1.51	-0.14	-8.48%
PRESCO	55.00	-3.00	-5.17%
LIVESTOCK	0.60	-0.03	-4.76%

Benchmark T-Bills Discount Rates
	13-Jun-19	11-Jun-19	Change in Rates
84 Days .	11.21%	11.33%	-0.12%
175 Days-	12.26%	12.26%	0.00%
350 Days.	12.27%	12.30%	-0.03%
Source: FMDQ DQL for 13 June 2019

Benchmark FGN Bond Yields
	13-Jun-19	11-Jun-19	Change in Yield
3 yrs: 16.00% 15-Jul-2021	14.82%	14.73%	0.09%
5 yrs: 15.54% 27-Apr 2023	14.70%	14.73%	-0.03%
10 yrs: 13.98% 23-Feb 2028	14.72%	14.63%	0.09%
20 yrs: 16.25% 18-Apr 2037 .	14.60%	14.54%	0.06%
Source: FMDQ DQL for 13 June 2019

Benchmark FGN EuroBond Yields
	13-Jun-19	11-Jun-19	Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21	4.74%	4.68%	0.06%
5 yrs: NGERIA 6 3/8 07/12/23	5.53%	5.49%	0.04%
10 yrs: NGERIA 6 1/2 11/28/27	7.25%	7.17%	0.08%
20 yrs: NGERIA 7.696 02/23/38	8.18%	8.10%	0.08%
30 yrs: NGERIA 9.248 01/21/49	8.70%	8.63%	0.07%
Source: FMDQ DQL for 13 June 2019

AIICO Money Market Fund (AMMF)
Net Yield (As at current date)	13.14% 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	55	10.15%	10.31%
17-Oct-19	132	12.15%	12.71%
07-Nov-19	153	11.80%	12.41%
16-Jan-20	223	12.15%	13.12%

Select Macro-economic Indices
Inflation % (April 2019)	11.37 (+1.07% ytd)
PMI (May 2019)	57.80
MPR (%)	13.5 (-5%/+2% around mid-point)
CRR (%)	22.5
Brent Crude Price US$ pbbl	61.32 (+2.25% d/d)
External Reserve (US$’billion)	45.173 (+1.62% ytd)
GDP % (Q1 2019)	+2.01% (Q4 2018: +2.38% y/y)
NSE All Share Index (ASI)	30,029 (-0.23% d/d; -4.46% ytd)
Market Capitalisation (₦’Trillion)	13.22