Global financial markets rallied today, with the U.S. equities market gaining for an 8 consecutive day, after the U.S. Federal Reserve Bank (Fed) released the minutes of its Federal Open Market Committee (FOMC) meeting held in January, further emphasizing the Fed’s current dovish monetary stance and indication of a possible halt the reduction of its current asset holding of ca $3.8 trillion government treasuries before the end of 2019. Most benchmark equity indices gained day-on-day as well as global crude oil prices also rallying to new 3-month highs, with the Brent crude oil price gaining ca +1.08% day-on-day today at ca $67.16 per barrel.
We expect the U.S. Federal Reserve Bank to maintain its dovish monetary stance through Q1 2019, on expectation of slower growth in the world’s largest economy in 2019, and on continued uncertainties of on-going U.S./China trade negotiations as the deadline date.
Liquidity in the banking system opened on a positive note today, at ca ₦24 billion. There was no Open Market Operation (OMO) auction conducted by the Central Bank of Nigeria (CBN) today.
A relatively quiet trading day in the treasury bills secondary market today, with most activities seen at the short-end of the curve. The 21 March maturity remained the most traded to close at 10.49% from 10.12%, with average rate dropping ca -2bps day-on-day.
Open Buy Back (OBB) remained flat day-on-day at 15% while the Overnight (O/N) rate dropped to 15.50% from 15.83%. 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 7.50% for 30 – 60 days tenor on ₦10mln – ₦100mln.
Continued quiet trading in the bonds secondary market today, with only a few activities seen, particularly at the mid-end of the curve. Average yield rose by ca +13bps day-on-day, with the February 2028 maturity trading the most to close at 14.85%. Please find below a summary of the results of today’s primary market auction:
|S/N||AUCTION DATE||MATURITY DATE||AMOUNT OFFERED(NGN)||AMOUNT ALLOTED(NGN)||MARGINAL RATE|
|1||20-Feb-2019||27-Apr-23||₦50.00 billion||₦1.50 billion||14.5200%|
|2||20-Feb-2019||21-Mar-25||₦50.00 billion||₦28.85 billion||14.7999%|
|3||20-Feb-2019||28-Feb-28||₦50.00 billion||₦136.25 billion||14.9390%|
The Nigerian equities market closed on a positive note for a 2nd consecutive trading day, on price gains in highly capitalized stocks as Nigerian Breweries Plc (+10.00%), Guaranty Trust Bank Plc (+0.80%) and Zenith Bank Plc (+1.78%). The Nigerian Stock Exchange All Share Index (NSE ASI) appreciated by ca +0.64% day-on-day to close at 32,614.05pts, with market’s year-to-date returns at +3.77%.
The NSE Oil & Gas, Consumer Goods and Banking indices gained ca +99bps, +143bps and +81bps respectively, while the NSE Industrial index declined ca -0.02bps. Sterling Bank Plc led the volume chart with 105.75m units while Guaranty Trust Bank Plc led the value chart with ₦1.42bn worth of trade.
The Naira remained stable against the dollar at the interbank market window today, at ₦306.80/$1. In the parallel market, it remained stable against the Dollar and Euro at ₦360/$1 and ₦410/€1 respectively, while it depreciated against the Pound Sterling at ₦471/₤1 from ₦469/₤1. The Naira depreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦361.78/$1 from ₦361.68/$1.
Crude oil prices gained today, on continued positive sentiments of the impact of output cuts by the Organisation of Petroleum Exporting Countries, despite expectation of a rise in U.S. Shale production to 8.4 million barrels per day from March. Brent crude oil price rose ca +0.71% at $66.92pb, while WTI crude gained ca +1.39% at $56.87pb, as at report time. Spot gold rose ca +0.20% day-on-day at $1,347.50 per ounce.
|AIICO Money Market Fund (AMMF)|
|Net Yield (As at current date)||13.28% per annum|
|Added Benefit||Personal accident insurance cover|
|AIICO Capital Guaranteed Income Note (GIN) Rates p.a.|
|Amount (NGN)||30 Days||60 Days||90 Days||180 Days||364 Days|
|10,000,001 – 50,000,000||10.00||10.50||11.00||12.00||13.00|
|50,000,001 – 100,000,000||11.00||11.25||11.50||12.50||14.00|
|100,000,001 – 400,000,000||12.00||12.25||12.50||13.00||14.50|
|Trading Treasury Bills Rates p.a.|
|Maturity Dates||Tenor (Days)||Discount Rate||Effective Yield|
|Select Macro-economic Indices|
|Inflation % (December 2018)||11.44 (-25.57% ytd)|
|PMI (January 2019)||58.50|
|MPR (%)||14 (-5%/+2% around mid-point)|
|Brent Crude Price US$ pbbl||66.92 (+0.71% d/d)|
|External Reserve (US$’billion)||42.69 (-0.93% ytd)|
|GDP % (Q4 2018)||+2.38% (Q3 2018: +1.81% y/y)|
|NSE All Share Index (ASI)||32,614.06 (+0.64% d/d; +3.77% ytd)|
|Market Capitalisation (₦’Trillion)||12.16|