Financial Markets Today
The U.S. financial markets appreciated today, in continued reaction to last Friday’s release of better-than-expected Q1 GDP growth rate at 3.2% vs market analysts expectation of 2.5%, and with consumer spending which accounts for more than 75% of U.S. economic activities, rising by 0.9% in March, its highest since 2009 vs 0.1% gained in February, data released today indicated. The U.S. Dow Jones Industrial Average (DJIA), S & P 500 and NASDAQ all gained ca +0.14%, +0.24% and +0.34% respectively, with yield on the 10yr U.S. treasury rising to ca +2.536%.
We expect current positive sentiments to continue to support further gains in the U.S. equities and treasuries markets for the remainder of the week, on continued expectation of further positive economic data to be released later in the week, and with the U.S. Federal Reserve Bank expected to hold its benchmark interest rate unchanged at the conclusion of its meeting on Wednesday, 01 May 2019.
MONEY MARKETS
CAPITAL MARKETS
FOREIGN EXCHANGE
COMMODITIES
Banking system liquidity opened negative today at ca -₦53.8bn from ca +₦471.8bn on Friday as Banks funded Retail FX interventions and the Bonds primary market auction (PMA) from last week Friday. The was no Open Market Operation (OMO) auction by the Central Bank of Nigeria (CBN) today.
Treasury Bills
The treasury bills secondary market kicked off the week on a bullish note as market witnessed demand at the short end of the curve. Average rate shed ca -1bps day on day, with the 06 June 2019 maturity trading the most to close at 9.51% from 10.71%.
Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded higher day-on-day at 17.86% and 18.57% from 16.43% and 17.29%. 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 8.00% for 30 – 60 days tenor on ₦10mln – ₦100mln.
Bonds
The bonds secondary market kicked off the week on a quiet note with some demand at the short end of the curve, with low volumes traded. Average yields were flat day-on-day with the April 2037 maturity remaining at 14.50%.
Eurobonds
The Eurobonds market traded on a bearish note today, as average yields gained ca +2bps day-on-day with the January 2049 maturity closing at 8.45% from 8.42%.
Equities
The Nigerian equities market closed negative today, with the Nigerian Stock Exchange All Share Index (NSE ASI) shedding ca -0.79% day-on-day to close at 29,521.06pts, and market’s year-to-date returns at -6.08%. This was mainly due to losses in StanbicIBTC Plc (-4.04%), Guaranty Trust Bank Plc (-2.19%) and Zenith Bank Plc (-1.17%).
The NSE Banking, Oil & Gas and Industrial indices lost ca -115bps, -112bps and -294bps respectively, while the NSE Consumer Goods index gained ca +25bps. Japaul Oil Plc led the volume chart with 60.42m units while Zenith Bank Plc led the value charts with ca ₦300.21mn.
The Naira traded flat against the dollar in both the interbank and parallel markets today at ₦306.90/$1 and ₦360/$1 respectively. It remained stable against the Pound sterling and the Euro at ₦474/₤1 and ₦403/€1 respectively in the parallel market. In the Nigerian Autonomous Foreign Exchange (NAFEX) window, the Naira appreciated against the Dollar to close at ₦360.36/$1 from ₦360.41/$1.
Oil prices recovered today as it attempts to bounce back from Friday’s slump, caused by U.S. President – Donald Trump’s tweets of a demanded to the Organisation of Petroleum Exporting Countries (OPEC) to increase output to support shortages from sanctions on Iran. Brent crude oil price gained ca +0.43% day-on-day at $72.46pb, while WTI gained ca +0.47% day-on-day at $63.60pb, as at report time. Spot gold lost ca -0.613% to close at $1,280.90 per ounce.
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| Benchmark T-Bills Discount Rates | ||||
| 29-Apr-19 | 26-Apr-19 | Change in Rates | ||
| 52Days . | 10.43% | 10.82% | -0.39% | |
| 143Days- | 12.76% | 12.76% | 0.00% | |
| 339Days. | 12.68% | 12.68% | 0.00% | |
| Source: FMDQ DQL for 29 April 2019 *T-Bills Discount Rates are slightly different from current market rates |
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| Benchmark FGN Bond Yields | ||||
| 29-Apr-19 | 28-Apr-19 | Change in Yield | ||
| 3 yrs: 16.00% 15-Jul-2021 | 14.76% | 14.83% | -0.07% | |
| 5 yrs: 15.54% 27-Apr 2023 | 14.54% | 14.60% | -0.06% | |
| 10 yrs: 16.29% 17 Mar 2027 | 14.55% | 14.53% | 0.02% | |
| 20 yrs: 16.25% 18-Apr 2037 . | 14.50% | 14.50% | 0.00% | |
| Source: FMDQ DQL for 29 April 2019 | ||||
| Benchmark FGN EuroBond Yields | ||||
| 29-Apr-19 | 28-Apr-19 | Change in Yield | ||
| 3 yrs: NGERIA 6 3/4 01/28/21 | 4.94% | 4.92% | 0.02% | |
| 5 yrs: NGERIA 6 3/8 07/12/23 | 5.57% | 5.56% | 0.01% | |
| 10 yrs: NGERIA 6 1/2 11/28/27 | 6.78% | 6.76% | 0.02% | |
| 20 yrs: NGERIA 7.696 02/23/38 | 7.85% | 7.82% | 0.03% | |
| 30 yrs: NGERIA 9.248 01/21/49 | 8.45% | 8.42% | 0.03% | |
| Source: FMDQ DQL for 29 April 2019 | ||||
| AIICO Money Market Fund (AMMF) | |
| Net Yield (As at current date) | 13.10% 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 | 94 | 9.90% | 10.16% |
| 17-Oct-19 | 171 | 11.85% | 12.55% |
| 07-Nov-19 | 192 | 12.10% | 12.92% |
| 16-Jan-20 | 262 | 12.20% | 13.27% |
| Select Macro-economic Indices | |
| Inflation % (March 2019) | 11.25 (-1.16% ytd) |
| PMI (March 2019) | 57.40 |
| MPR (%) | 13.5 (-5%/+2% around mid-point) |
| CRR (%) | 22.5 |
| Brent Crude Price US$ pbbl | 72.46 (+0.43% d/d) |
| External Reserve (US$’billion) | 44.792 (+2.27% ytd) |
| GDP % (Q4 2018) | +2.38% (Q3 2018: +1.81% y/y) |
| NSE All Share Index (ASI) | 29,521.06 (-0.79% d/d; -6.08% ytd) |
| Market Capitalisation (₦’Trillion) | 11.09 |
Financial Markets Update – 29 April 2019
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This document has been issued and approved by AIICO Capital and is based on information from various sources that we believe are reliable. However, no representation is made that it is accurate or complete. While reasonable care has been taken in preparing this document, no responsibility or liability is accepted for errors or fact or for any opinion expressed herein. This document is for information purposes only. It does not constitute any offer or solicitation to any person to enter into any trading transaction.
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