Financial Markets Today

Financial Markets Today

Price of Gold in the international market rallied to its highest in 6years, trading at ca $1,415.40 per ounce today on rising expectation of an easing in monetary policy in the U.S. and continued expectation of weakening of the U.S. Dollar against major global currencies. This comes after major global Central Banks indicated the willingness to implement further monetary stimulus in their respective economies if required to boost or sustain economic growth.

With increasing uncertainties of global economic growth in 2019, continued escalation of global tensions and rising expectation for rate cuts by global Central Banks in the second half of 2019, we expect continued interest in safe haven assets in the near term.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened positive today at ca ₦489.86bn, higher than ca ₦182.21bn with Banks’ having to make provisions for Retail FX interventions. The Central Bank of Nigeria (CBN) did not conduct an Open Market Operation (OMO) auction today due to the primary market auction.

Treasury Bills
The treasury bills secondary market ended the week on a bearish note today, with some sell offs on short-to-mid dated maturities as Banks made provisions for Retail FX intervention by the CBN. Average yields gained ca +6bps day-on-day with the 26 September 2019 maturity closing at 11.56% from 11.47%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded higher day-on-day at 8.71% and 9.21% from 4.43% and 5.00%. 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 quiet end to the week in the bonds secondary market today, with few activity across the curve. A bit of cherry picking at the short end of the curve saw average yields shedding ca -2bps day-on-day, with the July 2021 paper closing at 14.52% from 14.63%.


Eurobond

The nation’s Eurobonds market closed the week on a slightly bearish note today due to some profit taking across the curve, after rallying for most part of the week. Average yields inched up gaining ca +6bps day-on-day, with the 2049 paper closing at 8.18% from 8.13%.

Equities
The Nigerian equities market closed positive today, with the Nigerian Stock Exchange All Share Index (NSE ASI) marginally gaining ca +0.29% day-on-day to close at 29,851.29pts, and market’s year-to-date returns at -5.02%. This was mainly due to a gain in Dangote Cement Plc (+1.10%).

The NSE Industrial, Oil & Gas and Banking indices gained ca +260bps, +156bps and +7bps respectively, while the Consumer goods index lost ca -84bps. Zenith Bank Plc led the volume chart with ca 29.65m units while MTN Nigeria Plc led the value chart with ca ₦1.27bn worth of trades.

The Naira remained flat against the dollar in the interbank and parallel markets at ₦306.95/$1 and ₦362/$1 respectively. It also remained unchanged in the parallel market against the Pound sterling and Euro at ₦463/₤1 and ₦405/€1 respectively. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate depreciated marginally day-on-day at ₦360.50/$1 from ₦360.33/$1.

Crude oil prices gained today, off the back of heightened tensions between U.S and Iran, with the U.S. President – Donald Trump indicating in a tweet that the U.S. had aborted a possible attack on Iran earlier today. Brent crude oil price gained ca +1.10% day-on-day at $65.16pb, while WTI gained ca +0.63% day-on-day at $57.43pb, as at report time. Spot gold also gained ca +0.3293% at $1,401.60 per ounce, approaching a 6yr high.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
WAPCO 11.55 1.05 +10.00%
GLAXOSMITH 9.35 0.85 +10.00%
CUTIX 1.47 0.12 +8.89%
LAWUNION 0.50 0.04 +8.70%
LINKASSURE 0.66 0.05 +8.20%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
CHAMS 0.31 -0.03 -8.82%
ABCTRANS 0.27 -0.02 -6.90%
SOVRENINS 0.22 -0.01 -4.35%
FIDELITYBK 1.73 -0.07 -3.89%
AFRIPRUD 3.41 -0.13 -3.67%
Benchmark T-Bills Discount Rates
  21-Jun-19 20-Jun-19 Change in Rates
90 Days                                      . 11.37% 10.50% 0.87%  
181 Days- 11.73% 11.62% 0.11%  
356 Days. 12.01% 12.01% 0.00%  
Source: FMDQ DQL for 21 June 2019
Benchmark FGN Bond Yields
  21-Jun-19 20-Jun-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.52% 14.63% -0.11%  
5 yrs: 15.54% 27-Apr 2023 14.34% 14.34% 0.00%  
10 yrs: 13.98% 23 Feb 2027 14.50% 14.48% 0.02%  
20 yrs: 16.25% 18-Apr 2037  . 14.77% 14.77% 0.00%  
Source: FMDQ DQL for 21 June 2019
Benchmark FGN EuroBond Yields
  21-Jun-19 20-Jun-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.14% 4.10% 0.04%  
5 yrs: NGERIA 6 3/8 07/12/23 5.04% 4.99% 0.05%  
10 yrs: NGERIA 6 1/2 11/28/27 6.71% 6.63% 0.08%  
20 yrs: NGERIA 7.696 02/23/38 7.66% 7.60% 0.06%  
30 yrs: NGERIA 9.248 01/21/49 8.19% 8.13% 0.06%  
Source: FMDQ DQL for 21 April 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.22% 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 69 10.40% 10.61%
17-Oct-19 118 11.20% 11.62%
07-Nov-19 139 11.40% 11.92%
16-Jan-20 209 11.75% 12.60%
Select Macro-economic Indices
Inflation % (May 2019) 11.40 (+0.26% ytd)
PMI (May 2019) 57.80
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 65.16 (+4.45% d/d)
External Reserve (US$’billion) 45.087 (+1.41% ytd)
GDP % (Q1 2019) +2.01% (Q4 2018: +2.38% y/y)
NSE All Share Index (ASI) 29,851.29 (+0.29% d/d; -5.02% ytd)
Market Capitalisation (₦’Trillion) 13.15

Financial Markets Update – 21 JUNE 2019

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