Global equities market appreciated today to close a very bullish week on a positive note, with most benchmark indices gaining day-on-day. This can be attributed to continued investors’ optimism of a positive outcome to the U.S/China trade negotiations, with the expectation of an extension to the 01 March deadline for a deal to be reached. Global crude oil prices also rallied to year-to-date high with Brent crude oil price trading at ca $67.20 per barrel today.
We expect current optimistic sentiments of U.S./China trade negotiations to keep investors’ interest in risk assets of developed economies higher vs Q4 2018, and on the back of rising expectation of continued dovish monetary policy stance by the U.S. Federal Reserve Bank for a better part of 2019.
Liquidity in the banking system was expected to open negative today. There was no Open Market Operation (OMO) auction conducted by the Central Bank of Nigeria (CBN) today.
A very active trading day in the treasury bills secondary market today, with demand seen particularly at the short-end of the curve. Average rates dropped ca -22bps day-on-day, with the 18 April maturity trading the most to close at 9.50% from 10.80%.
Open Buy Back (OBB) and Overnight (O/N) rates rose day-on-day to 18.83% and 20.25% from 13.67% and 14.58%. 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.
A relatively active trading day in the bonds secondary market today, with demand seen particularly on the February 2028 maturity which closed at 14.70% from 14.89%. Average yield dropped -17bps day-on-day.
The Nigerian equities market declined for a 2nd consecutive trading day, with the Nigerian Stock Exchange All Share Index (NSE ASI) losing ca -0.16% day-on-day to close at 32,515.52pts, with market’s year-to-date returns at +3.45%. This was largely due to price decline in Dangote Cement Plc (-0.31%) and Nigerian Breweries Plc (-3.03%).
The NSE Consumer Goods and Banking indices lost ca -85bps and -27bps respectively, while the NSE Industrial and Oil & Gas indices gained ca +16bps and +49bps respectively. Diamond Bank Plc led the volume chart with 40.72m units while Guaranty Trust Bank Plc led the value chart with ₦729.98mn 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, Pound Sterling and Euro at ₦360/$1, ₦470/₤1 and ₦408/€1 day-on-day, respectively. The Naira appreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦361.44/$1 from ₦361.59/$1.
Crude oil prices recovered some of yesterday’s loses today, supported by growing optimism of a positive outcome of current U.S./China trade negotiations and continued positive impact of crude oil output cuts by the Organisation of Petroleum Exporting Countries (OPEC). Brent crude oil price gained ca +0.16% at $67.18pb, while WTI crude gained ca +0.72% at $57.37pb, as at report time. Spot gold rose ca +0.50% day-on-day at $1,334.50 per ounce.
|AIICO Money Market Fund (AMMF)|
|Net Yield (As at current date)||13.28% per annum|
|Added Benefit||Personal accident insurance cover|
|AIICO Capital Guaranteed Income Note (GIN) Rates p.a.|
|Amount (NGN)||30 Days||60 Days||90 Days||180 Days||364 Days|
|10,000,001 – 50,000,000||10.00||10.50||11.00||12.00||13.00|
|50,000,001 – 100,000,000||11.00||11.25||11.50||12.50||14.00|
|100,000,001 – 400,000,000||12.00||12.25||12.50||13.00||14.50|
|Trading Treasury Bills Rates p.a.|
|Maturity Dates||Tenor (Days)||Discount Rate||Effective Yield|
|Select Macro-economic Indices|
|Inflation % (December 2018)||11.44 (-25.57% ytd)|
|PMI (January 2019)||58.50|
|MPR (%)||14 (-5%/+2% around mid-point)|
|Brent Crude Price US$ pbbl||67.18 (+0.16% 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)||32,515.52(-0.16% d/d; +3.45% ytd)|
|Market Capitalisation (₦’Trillion)||12.13|