Financial Markets Today

Financial Markets Today

Yields of treasuries of Developed economies (DMs) dropped to a 2-month low today, on continued growing fears of escalating U.S./China trade tensions, as investors sought safe-haven risk assets of DMs. This comes as the minutes of the last Federal Open Market Committee (FOMC) meeting concluded on 01 May was released today, with the Committee indicating it would adopt a patient approach in determining future rate changes. Yields on the U.S. 10yr treasuries, German 10yr treasuries, UK 10yr treasuries and French 10yr treasuries declined ca +2.393%, -0.09%, +1.008% and +0.3038%, on a rise in demand for safe-haven treasuries.

We expect continued trade uncertainties between the world’s largest economies to keep investor’s interest in safe-haven instruments sustained in the near term, particularly treasuries of Developed Economies (DMs). We also expect Central Banks of DMs to sustain current dovish monetary stance in the near term.





Banking system liquidity opened positive today at ca ₦260.8bn marginally lower than ca ₦265.6bn yesterday. The Central Bank of Nigeria (CBN) did not conduct an Open Market Operation (OMO) auction today.

Treasury Bills
Trading activities in the treasury bills secondary market was relatively quiet today with most of market activities seen at the mid-to-long end of the curve. Average rates shed ca -6bps day-on-day, with the 27 February 2020 paper trading the most to close at 11.60% from 11.62%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded flat day-on-day at 4.57% and 5.29%. 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.

The bonds secondary market saw a bit more activity today, with demand on select maturities as investors focused on the primary auction. Average yields shed ca -3bps day-on-day, with July 2021 maturity closing at 14.35% from 14.39%. The Debt Management Office sold a total of ca ₦111bn at today’s Primary Market Auction (PMA), please find below a summary of the results:





1 22-May-19 27-Apr-23 ₦35.00 billion  ₦27.375 billion 14.1100%
2 22-May-19 26-Apr-29 ₦35.00 billion  ₦35.00 billion 14.2400%
3 22-May-19 26-Apr-49 ₦30.00 billion  ₦48.930 billion 14.4900%


A bullish day in the nation’s Eurobonds market today, with demand seen across the yield curve. Average yields shed ca -6bps day-on-day with the November 2027 maturity closing at 6.90% from 6.98%.

The Nigerian equities market appreciated for a 5th consecutive trading day, with the Nigerian Stock Exchange All Share Index (NSE ASI) gaining ca +3.07% day-on-day to close at 31,145.15pts, with the market’s year-to-date returns at -0.91%. This was mainly due to gains in Dangote Cement Plc (+9.73%) and MTN Nigeria Plc (+9.98).

The NSE Industrial index gained ca +450bps, while the NSE Banking, Consumer goods and Oil & Gas indices all lost -267bps, -357bps and -27bps respectively. MTN Nigeria Plc led both the volume and value charts for a 3rd consecutive day with 93.72m units traded at ₦13.58bn.

The Naira declined against the dollar in the interbank market at ₦306.90/$1 from ₦306.95/$1. It remained flat against the dollar and Euro at ₦361/$1 and ₦404/€1 respectively, while depreciating against the Pound sterling at ₦471/₤1 from ₦467/₤1, in the parallel market. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate depreciated to ₦360.42/$1 from ₦360.18/$1.

Crude oil prices declined today, as data released by the Energy Information Administration (EIA) showed a week-on-week growth of 4.7 million barrels in U.S. stockpiles vs market analysts expectation of a decline of 599,000 barrels. Brent crude oil price was down ca –1.91% day-on-day at $70.80pb, while WTI lost ca -2.79% day-on-day at $61.37pb, as at report time. Spot gold gained ca +0.19% at $1,275.60 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
MTNN 144.85 13.15 +9.98%
VITAFOAM 4.25 0.38 +9.82%
DANGCEM 203.00 18.00 +9.73%
THOMASWY 0.40 0.03 +8.11%
UPL 1.80 0.10 +5.88%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
LAWUNION 0.40 -0.04 -9.09%
ETI 9.15 -0.85 -8.50%
JAPAULOIL 0.22 -0.02 -8.33%
COURTVILLE 0.23 -0.02 -8.00%
NESTLE 1320.00 -110.00 -7.69%
Benchmark T-Bills Discount Rates
22-May-19 21-May-19 Change in Rates
86 Days                                      . 10.00% 10.00% 0.00%
176 Days- 11.54% 12.02% -0.48%
344 Days. 12.35% 12.35% 0.00%
Source: FMDQ DQL for 22 April 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
22-May-19 21-May-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.35% 14.39% -0.04%
5 yrs: 15.54% 27-Apr 2023 14.35% 14.32% 0.03%
10 yrs: 13.98% 17 Mar 2027 14.21% 14.35% -0.14%
20 yrs: 16.25% 18-Apr 2037  . 14.36% 14.37% -0.01%
Source: FMDQ DQL for 22 April 2019
Benchmark FGN EuroBond Yields
22-May-19 21-May-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.72% 4.78% -0.06%
5 yrs: NGERIA 6 3/8 07/12/23 5.45% 5.51% -0.06%
10 yrs: NGERIA 6 1/2 11/28/27 6.90% 6.98% -0.08%
20 yrs: NGERIA 7.696 02/23/38 7.94% 7.98% -0.04%
30 yrs: NGERIA 9.248 01/21/49 8.49% 8.56% -0.07%
Source: FMDQ DQL for 22 April 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.29% 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 71 9.50% 9.68%
17-Oct-19 148 10.85% 11.35%
07-Nov-19 169 10.85% 11.42%
16-Jan-20 239 11.15% 12.03%
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 70.80 (-1.91% d/d)
External Reserve (US$’billion) 45.060 (+2.21% ytd)
GDP % (Q4 2018) +2.01% (Q4 2018: +2.38% y/y)
NSE All Share Index (ASI) 31,145 (+3.07% d/d; -0.91% ytd)
Market Capitalisation (₦’Trillion) 13.72

Financial Markets Update – 22 MAY 2019

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