Financial Markets Today

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.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
VERITASKAP 0.22 0.02 +10.00%
DANGFLOUR 17.10 1.55 +9.97%
FO 32.10 2.90 +9.93%
JBERGER 24.70 2.20 +9.97%
CHAMS 0.46 0.04 +9.52%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
CCNN 15.35 -1.65 -9.71%
MAYBAKER 2.05 -0.20 -8.89%
TOTAL 166.10 -15.90 -8.74%
FIRSTALUM 0.44 -0.04 -8.33%
UNIONDAC 0.23 -0.02 -8.00%
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
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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