Financial Markets Today

Financial Markets Today

U.S. Equity prices rallied today, on rising investors’ optimism of a possible resolution of current global trade tensions between U.S. and China. This comes as both the U.S. President – Donald Trump and Chinese Premier – Xi Jinping are set to meet at the forth-coming Group of 20 (G-20) meeting holding this week-end, with the Chinese government anticipated to submit a balanced trade deal proposal to the U.S. The Dow Jones Industrial Average (DJIA), S&P 500 and NASDAQ all gained ca +0.26%, +0.51% and +0.73% respectively.

We expect investors to maintain cautious optimism in the build up to the G-20 summit, on continued uncertainties of a possible U.S./China trade deal. We also expect further gains in global equities prices in the near term if a deal is reached at the G-20 meeting.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened positive today at ca ₦338.33bn as the Central Bank of Nigeria (CBN) credited Open Market Operation (OMO) maturities of ca ₦210bn. The CBN did not conduct an OMO auction today.

Treasury Bills
Despite positive interbank liquidity, the treasury bills secondary traded on a bearish note today, with sell offs on short-to-mid dated maturities. Average yields marginally gained ca +2bps day-on-day with the 10 October 2019 maturity closing at 11.32% from 11.16%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded lower day-on-day at 4.50% and 4.64% from 5.50% and 6.07%. 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.

Bonds
An active day in the bonds secondary market today, with demand at the mid-to-long end of the curve. Market reacted positively to yesterday’s auction results that closed higher than previous auction levels, as unfilled orders filtered into the secondary market. Average yields shed ca -11bps day-on-day with the February 2028 paper closing at 14.45% from 14.52%.

Eurobonds

A bullish trading session in the nation’s Eurobonds market today, on increased investors’ optimism ahead of the G-20 summit. Average yields shed ca -7bps day-on-day, with the 2049 paper closing at 8.18% from 8.23%.

Equities

The Nigerian equities market gained today, after 3 consecutive trading days of losses, with the Nigerian Stock Exchange All Share Index (NSE ASI) gaining ca +47% day-on-day to close at 29,749.35pts, and market’s year-to-date returns at -5.35%. This was due to gains in Dangote Cement Plc (+0.54%), MTN Nigeria Plc (+0.39%), Guaranty Trust Bank Plc (+0.49%) and Nestle Nigeria Plc (+3.70%).

The NSE Industrial, Consumer goods and Oil & Gas indices all gained ca +264bps, +74bps and +177bps respectively, while the NSE Banking index lost ca -10bps. Transnational Corporation of Nigeria Plc led the volume chart with ca 45.97mn units while Guaranty Trust Bank Plc led the value chart with ca ₦978.97mn worth of trades.

The Naira remained flat against the dollar in the interbank market at ₦306.90/$1 today. In the parallel market, it marginally appreciated to ₦361/$ from ₦362/$1, while it depreciated against the Pound sterling and the Euro at ₦464/₤1 and ₦410/€1 from ₦463/₤1 and ₦407/€1 respectively. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate depreciated day-on-day at ₦360.56/$1 from ₦360.49/$1.

Crude oil prices traded mixed today, on concerns of the possibility of trade deal being reach at the G20 summit holding this week-end. Brent crude oil price lost ca -0.02% day-on-day at $66.48pb, while WTI gained ca +0.08% day-on-day at $59.44pb, as at report time. Spot gold fell -0.31% at $1,411.00 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
CCNN 13.20 1.20 +10.00%
BOCGAS 4.13 0.37 +9.84%
INTBREW 18.30 1.60 +9.58%
COURTVILLE 0.25 0.02 +8.70%
CHIPLC 0.26 0.02 +8.33%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
FO 27.40 -3.00 -9.87%
BERGER 6.45 -0.70 -9.79%
NB 57.50 -4.50 -7.26%
STERLNBANK 2.20 -0.15 -6.38%
TRANSCORP 1.09 -0.05 -4.39%
Benchmark T-Bills Discount Rates
  27-Jun-19 26-Jun-19 Change in Rates
84 Days 11.07% 10.85% 0.22%  
175 Days 11.79% 11.66% 0.13%  
343 Days. 11.70% 11.70% 0.00%  
Source: FMDQ DQL for 27 June 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
  27-Jun-19 26-Jun-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.31% 14.31% 0.00%  
5 yrs: 15.54% 27-Apr 2023 14.27% 14.23% 0.04%  
10 yrs: 13.98% 17 Mar 2028 14.41% 14.53% -0.12%  
20 yrs: 16.25% 18-Apr 2037   14.45% 14.52% -0.07%  
Source: FMDQ DQL for 27 June 2019
Benchmark FGN EuroBond Yields
  27-Jun-19 26-Jun-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.03% 4.16% -0.13%  
5 yrs: NGERIA 6 3/8 07/12/23 4.89% 5.03% -0.14%  
10 yrs: NGERIA 6 1/2 11/28/27 6.65% 6.73% -0.08%  
20 yrs: NGERIA 7.696 02/23/38 7.66% 7.71% -0.05%  
30 yrs: NGERIA 9.248 01/21/49 8.18% 8.23% -0.05%  
Source: FMDQ DQL for 27 June 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
29-Aug-19 63 10.65% 10.85%
17-Oct-19 112 10.80% 11.17%
07-Nov-19 133 11.35% 11.84%
16-Jan-20 203 11.60% 12.40%
Select Macro-economic Indices
Inflation % (May 2019) 11.40 (+0.26% ytd)
PMI (May 2019) 57.80
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 66.48 (-0.02% d/d)
External Reserve (US$’billion) 45.089 (+1.41% ytd)
GDP % (Q1 2019) +2.01% (Q4 2018: +2.38% y/y)
NSE All Share Index (ASI) 29,749.35 (+0.47% d/d; -5.35% ytd)
Market Capitalisation (₦’Trillion) 13.11

Financial Markets Update – 27 JUNE 2019

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