Financial Markets Today

Financial Markets Today

U.S. equities prices rallied today, reversing earlier losses with the Dow Jones Industrial Average (DJIA), S&P 500 and NASDAQ benchmark indices all gaining ca +0.01%, +0.36% and +0.27% respectively. This comes of the back of comments by the President of the New York Federal Reserve Bank – John Williams, a voting member of the Federal Open Market Committee (FOMC) of the U.S. Federal Reserve Bank (Fed) indicated the Apex bank needed to act quickly in an economic slowdown, further increasing investors expectation for a bigger cut to the Fed’s benchmark interest rate, at its meeting later this month.

We expect continued high volatility in global financial markets in the near term, with increasing demand for safe-haven risk assets on lingering concerns of significant slowdown in the global economic growth, continued trade tensions and expectation of a larger negative impact on U.S. economic growth rate for Q2 2019, expected to be released next week Friday.





Banking system liquidity was expected to open positive today, as the interbank remains liquid with expected inflow from bond coupon payments and Open Market Operation (OMO) maturities of ca ₦177mln. The Central Bank of Nigeria (CBN) today, conducted the first OMO auction in 2-week.

Treasury Bills
The treasury bills secondary market traded mixed today, after a surprise conduct of an OMO auction by the CBN. Rates recovered from yesterday’s low after the reduced stop rates at the Primary Market Auction (PMA). Average yields gained ca +4bps day-on-day with the 26 December 2019 maturity closing at 10.24% from 10.14%. Please find below a summary of the results of today’s auction:

Tenor 91-Days 225-Days 353-Days
Maturity Date: 17-Oct-19 16-Jan-20 16-Jul-20
Amount Offered: ₦10.000 billion ₦15.000 billion ₦50.000 billion
Subscription ₦41.19 billion ₦56.81 billion ₦700.79 billion
Amount Allotted: ₦4.06 billion ₦43.11 billion ₦352.83 billion
Range of bids 11.2000% – 11.6000% 11.5000% – 12.1000% 12.0000% – 12.4000%
Stop Rate 11.4000% 11.8400% 12.4000%

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded higher day-on-day at 6.29% and 7.00% from 3.86% and 4.50%, as market reacted to the conduct of an Open Market Operation (OMO) auction. 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.

Yields in the bonds secondary market opened higher today, as market reacted to the release of the Q3 Bonds issuance calendar by the Debt Management’s Office (DMO) and the conduct of an Open Market Operation (OMO) auction by the Central Bank (CBN). Average yields inched up marginally despite weak trading volumes, as the February 2028 paper closed at 13.66% from 13.62%.


Not a lot of activity in the nation’s Eurobonds market today, as market showed little interest for the Nigerian sovereign papers. Average yields marginally gained ca +2bps day-on-day with the November 2027 paper closing at 6.23% from 6.21%.

The Nigerian equities market closed on a negative note today for the 8th consecutive trading session, with the Nigerian Stock Exchange All Share Index (NSE ASI) marginally shedding ca -0.64% day-on-day to close at 27,864.49pts, and market’s year-to-date returns at -11.35%. This was due to losses in StanbicIBTC Bank Plc (-1.28%), MTN Nigeria Plc (-0.78%) and Zenith Bank Plc (-0.54%).

The NSE Banking, Oil & Gas and Consumer goods indices all lost ca -119bps, -474bps and -37bps respectively, while the Industrial index gained ca +6bps. FBN Holding Plc led the volume chart with ca 33.33m units while Nigeria Breweries Plc led the value chart with ca ₦461.34mn worth of trades.

The Naira traded flat day-on-day against the dollar in the interbank and parallel markets at ₦306.95/$1 and ₦360/$1 respectively. In the parallel market, it was unchanged against the Pound Sterling and the Euro at ₦462/₤1 and ₦405/€1 respectively. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate depreciated day-on-day at ₦361.23/$1 from ₦361.02/$1.

Crude oil prices declined today, on the back of reports that the International Energy Agency (IEA) cut its global oil demand growth forecasts to 1.1million barrels per day (mbpd), a further reduction from it’s earlier cut to 1.2mbpd in June 2019. Brent crude oil price shed ca -2.67% day-on-day at $61.96pb, while WTI shed ca -2.80% day-on-day at $55.19pb, as at report time. Spot gold gained ca +0.36% at $1,424.40 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
CONOIL 20.25 1.80 +9.76%
DANGSUGAR 11.25 0.95 +9.22%
SOVRENINS 0.21 0.01 +5.00%
JAPAULOIL 0.22 0.01 +4.76%
FCMB 1.60 0.07 +4.58%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
BERGER 6.30 -0.70 -10.00%
INTBREW 15.30 -1.70 -10.00%
SEPLAT 480.00 -50.00 -9.43%
CILEASING 4.95 -0.50 -9.17%
NEM 2.08 -0.21 -9.17%
Benchmark T-Bills Discount Rates
18-Jul-19 17-Jul-19 Change in Rates
84 Days 9.91% 9.86% 0.05%
175 Days- 10.59% 11.53% 0.06%
329 Days. 11.10% 11.10% 0.00%
Source: FMDQ DQL for 18 July 2019
Benchmark FGN Bond Yields
18-Jul-19 17-Jul-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 13.69% 13.69% 0.00%
5 yrs: 15.54% 27-Apr 2023 13.23% 13.23% 0.00%
10 yrs: 13.98% 23-Feb 2028 13.66% 13.62% 0.04%
20 yrs: 16.25% 18-Apr 2037 14.07% 14.05% 0.02%
30 yrs: 14.80% 26-Apr 2049 14.10% 14.10% 0.00%
Source: FMDQ DQL for 18 July 2019
Benchmark FGN EuroBond Yields
18-Jul-19 17-Jul-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.02% 4.02% 0.00%
5 yrs: NGERIA 6 3/8 07/12/23 4.64% 4.65% -0.01%
10 yrs: NGERIA 6 1/2 11/28/27 6.23% 6.21% 0.02%
20 yrs: NGERIA 7.696 02/23/38 7.46% 7.42% 0.04%
30 yrs: NGERIA 9.248 01/21/49 7.99% 7.97% 0.02%
Source: FMDQ DQL for 18 July 2019
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
29-Aug-19 42 9.65% 9.76%
17-Oct-19 91 9.70% 9.94%
07-Nov-19 112 9.60% 9.89%
16-Jan-20 182 10.25% 10.80%
Select Macro-economic Indices
Inflation % (June2019) 11.22 (-0.18% ytd)
PMI (June 2019) 57.40
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 61.96 (-2.76% d/d)
External Reserve (US$’billion) 45.094 (+1.39% ytd)
GDP % (Q1 2019) +2.01% (Q4 2018: +2.38% y/y)
NSE All Share Index (ASI) 27,864.49 (-0.64% d/d; -11.35% ytd)
Market Capitalisation (₦’Trillion) 13.58

Financial Markets Update – 18 JULY 2019

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