Financial Markets Today

Financial Markets Today

Global financial markets remained highly volatile today, with yields on government treasuries in developed economies (DMs) dropping to their lowest in 15-months on rising investors’ fears of global economic slowdown in 2019 and potential recessionary signals in the world’s largest economy – the U.S., after its yield curve inverted late last week and on the back of continued weak economic data from the U.S., China and the Eurozone. Yields on the U.S. 10yr treasury, German 10yr treasury, UK 10yr treasury and French 10yr treasury all declined to ca +2.377%, -0.083%, +1.003% and +0.2909% respectively, as global equities markets declined further on rising investors’ interest in safe-haven risk assets of DMs.


We expect continued volatility in the financial markets in the near term, with increasing investors’ interest in safe-haven assets of developed economies (DMs) on global economic slowdown in 2019 and rising expectation of a rate cut by the U.S. Federal Reserve Bank in the later part of 2019.





Banking system liquidity opened on a positive note today, at ca ₦68.612bn from previous day’s opening of ₦85.10bn. There was no Open Market Operation (OMO) auction today by the Central Bank of Nigeria (CBN), with market focus on today’s Bonds Primary Market Auction (PMA).

Treasury Bills

A less active trading day in the treasury bills secondary market today, despite yesterday’s reduction in the Monetary Policy Rate (MPR) by the Central Bank (CBN). Most of today’s activities was seen at the mid-end of the curve, with average rates losing ca -5bps day-on-day and the 20 June 2019 maturity trading the most to close at 10.91% from 11.22%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates dropped day-on-day to 15.14% and 15.50% from 16.43% and 17.29%, respectively. 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 7.50% for 30 – 60 days tenor on ₦10mln – ₦100mln.

A relatively active trading day in the domestic bonds secondary market today, with investors’ focus on the Primary Market Auction (PMA) and most activities seen at the mid-end of the curve. Average yield lost ca -2bps day-on-day, with the February 2028 maturity trading the most to close at 14.10% from 14.31%. Please find below a summary of the result of today’s PMA:

1 27-Mar-19 27-Apr-23 ₦40.00 billion ₦3.80 billion 13.5000%
2 27-Mar-19 21-Mar-25 ₦40.00 billion ₦5.55 billion 13.5000%
3 27-Mar-19 28-Feb-28 ₦20.00 billion ₦20.00 billion 13.5000%


Yield levels in the nation’s Foreign market rose today, with average yield gaining ca +8bps day-on-day, particularly the January 2049 maturity gaining ca +8bps day-on-day.

The Nigerian equities market depreciated today, with the Nigerian Stock Exchange All Share Index (NSE ASI) losing ca -0.67% day-on-day to close at 30,829.45pts, and market’s year-to-date returns at -1.91%. This was largely on the back of loses in Guaranty Trust Bank Plc (-3.74%) and Seplat Petroleum Development Company Plc (-1.82%).

The NSE Banking, Oil & Gas and Consumer Goods indices lost -98bps, -84bps and -39bps respectively, while the NSE Industrial indices gained ca +3bps. Zenith Bank Plc led both the volume and value charts with 27.93m units valued at ₦606.60mn.

The Naira remained stable against the dollar at the interbank market window today, at ₦306.95/$1. In the parallel market, it remained stable against the Dollar, Pound sterling and Euro at ₦360/$1, ₦475/₤1 and ₦406/€1, respectively. The Naira depreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦360.23/$1 from ₦360.16/$1.

Brent crude oil prices declined today, as data from the U.S. Energy Information Administration (EIA) showed a growth of 2.8 million barrels in Shale crude oil stockpiles week-on-week. Brent crude oil price lost ca -0.03% at $67.95pb, while WTI lost ca -0.85% at $59.43pb, as at report time. Spot gold lost ca -0.43% to $1,309.30 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
UNIONDAC 0.33 0.03 +10.00%
CUTIX 2.03 0.18 +9.73%
MEDVIEWAIR 1.80 0.10 +5.88%
CADBURY 11.20 0.35 +3.23%
UBN 7.10 0.20 +2.90%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
NEM 2.22 -0.13 -5.53%
STANBIC 46.00 -2.50 -5.15%
FLOURMILL 18.00 -0.95 -5.01%
NIGERINS 0.21 -0.01 -4.55%
NASCON 18.20 -0.80 -4.21%
Benchmark T-Bills Discount Rates
27-Mar-19 26-Mar-19 Change in Rates
71Days                                      . 12.23% 12.03% 0.20%
162Days 13.37% 13.25% 0.12%
337Days. 12.82% 12.89% -0.07%
Source: FMDQ DQL for 27 March 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
27-Mar-19 26-Mar-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.67% 14.67% 0.00%
5 yrs: 15.54% 27-Apr 2023 14.17% 14.46% -0.29%
10 yrs: 16.29% 17 Mar 2027 14.17% 14.32% -0.15%
20 yrs: 16.25% 18-Apr 2037  . 14.14% 14.13% 0.01%
Source: FMDQ DQL for 27 March 2019
Benchmark FGN EuroBond Yields
27-Mar-19 26-Mar-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 5.00% 4.89% 0.11%
5 yrs: NGERIA 6 3/8 07/12/23 5.53% 5.42% 0.11%
10 yrs: NGERIA 6 1/2 11/28/27 6.73% 6.65% 0.08%
20 yrs: NGERIA 7.696 02/23/38 7.85% 7.78% 0.07%
30 yrs: NGERIA 9.248 01/21/49 8.34% 8.26% 0.08%
Source: FMDQ DQL for 27 March 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.71% 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-19 127 10.95% 11.38%
17-Oct-19 204 12.45% 13.38%
07-Nov-19 225 12.50% 13.54%
16-Jan-20 295 12.50% 13.90%


Select Macro-economic Indices
Inflation % (February 2019) 11.31 (-1.14% ytd)
PMI (February 2019) 57.10
MPR (%) 14 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 67.70 (+0.73% d/d)
External Reserve (US$’billion) 44.04 (+2.14% ytd)
GDP % (Q4 2018) +2.38% (Q3 2018: +1.81% y/y)
NSE All Share Index (ASI) 30.829.45 (-0.67% d/d; -1.91% ytd)
Market Capitalisation (₦’Trillion) 11.59

Financial Markets Update – 27 March 2019

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