Financial Markets Today
Global equities market opened the 3rd Month of 2019 on a positive note, with major global benchmark indices rising ca +0.5% to 1.50% day-on-day, as a Bloomberg report indicated a trade deal between the world’s largest economies – U.S. and China could be reached by mid-March. This comes after a very bullish month of February, with the U.S. equities market recording its best year-to-date start since 1991, with the U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ, Chinese SHANGAHI, German DAX and London’s FTSE indices gained ca +0.43%, +0.69%, +0.83%, +1.80%, +0.75% and +0.45% day-on-day, respectively.
With rising potential for a U.S./China trade deal to be reached in the near term and decreasing fears of further tightening of monetary policies by the U.S. Federal Reserve Bank, we expect this to increase investors’ appetite for risk assets and further interest in equities, particularly of China, with the expected increase to its weighting in Morgan Stanley Capital international (MSCI) global equity indices from 5% to 20% beginning from May.
MONEY MARKETS
CAPITAL MARKETS
FOREIGN EXCHANGE
COMMODITIES
Banking system liquidity opened on a positive note today, at ca ₦43.23bn. There was no Open Market Operation (OMO) auction conducted by the Central Bank of Nigeria (CBN) today.
Treasury Bills
Trading activities in the treasury bills secondary market was relatively less active today, with some demand seen at the long-end of the curve. Average rates dropped ca -16bps day-on-day, with the 20 February 2020 maturity trading the most to close at 13.10% from 13.66%.
Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates rose day-on-day to 16.33% and 17.42% from 13.17% and 14.25%. 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
A relatively quiet trading day in the bonds secondary market today, with most of market activities seen at the mid-to-long end of the curve. Average yield dropped ca -29bps day-on-day, with the February 2028 maturity trading the most to close at 13.86% from 13.92%.
Equities
The Nigerian equities market closed on a positive note today, with the Nigerian Stock Exchange All Share Index (NSE ASI) gained ca +0.34% day-on-day to close at 31,827.24pts, with market’s year-to-date returns at +1.26%. This was majorly due to price appreciation in Dangote Cement Plc (+0.67%), Nestle Nigeria Plc (+2.72%), Guaranty Trust Bank Plc (+0.42%), Nigerian Breweries Plc (+0.63%) and Zenith Bank Plc(+0.21%).
The NSE Oil & Gas, Consumer Goods, Industrial and Banking indices all gained ca +30bps, +8bps, +26bps and +40bps respectively. Zenith Bank Plc led both the volume and vale charts with 64.51m units traded at ₦1.546bn.
The Naira remained stable against the dollar at the interbank market window today, at ₦306.85/$1. In the parallel market, it remained stable against the Dollar and Euro at ₦360/$1 and ₦408/€1 day-on-day respectively, while depreciating against the Pound Sterling at ₦472/₤1 from ₦470/₤1. The Naira remained stable at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦361.13/$1.
Crude oil prices declined today, on increasing expectation of a slowdown in global crude oil demand after the release of China’s factory activity data which showed a drop for a 3rd consecutive month. Brent crude oil price declined ca -1.66% at $65.13pb, while WTI crude lost ca -1.85% at $56.16pb, as at report time. Spot gold lost ca -0.85% day-on-day at $1,304.00 per ounce.
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| AIICO Money Market Fund (AMMF) | |
| Net Yield (As at current date) | 13.28% per annum |
| Added Benefit | Personal accident insurance cover |
| AIICO Capital Guaranteed Income Note (GIN) Rates p.a. | |||||
| Amount (NGN) | 30 Days | 60 Days | 90 Days | 180 Days | 364 Days |
| 10,000,001 – 50,000,000 | 10.00 | 10.50 | 11.00 | 12.00 | 13.00 |
| 50,000,001 – 100,000,000 | 11.00 | 11.25 | 11.50 | 12.50 | 14.00 |
| 100,000,001 – 400,000,000 | 12.00 | 12.25 | 12.50 | 13.00 | 14.50 |
| Trading Treasury Bills Rates p.a. | |||
| Maturity Dates | Tenor (Days) | Discount Rate | Effective Yield |
| 21-Mar-19 | 20 | 7.20% | 7.23% |
| 09-May-19 | 69 | 8.55% | 8.69% |
| 01-Aug-19 | 153 | 9.75% | 10.17% |
| 07-Nov-19 | 251 | 12.40% | 13.56% |
| Select Macro-economic Indices | |
| Inflation % (January 2019) | 11.37 (-0.61% ytd) |
| PMI ( February 2019) | 57.10 |
| MPR (%) | 14 (-5%/+2% around mid-point) |
| CRR (%) | 22.5 |
| Brent Crude Price US$ pbbl | 65.13 (-1.66% d/d) |
| External Reserve (US$’billion) | 42.33 (-1.82% ytd) |
| GDP % (Q4 2018) | +2.38% (Q3 2018: +1.81% y/y) |
| NSE All Share Index (ASI) | 31,718.70 (-1.63% d/d; +0.92% ytd) |
| Market Capitalisation (₦’Trillion) | 11.83 |
Financial Markets Update – 01 March 2019
Important Disclaimers
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.
Investments discussed in this report may not be suitable for all investors. This report is provided solely for the information of AIICO Capital clients who are then expected to make their own investment decisions. AIICO Capital conducts designated investment business with market counter parties and customers and this document is directed only to such persons. AIICO Capital accepts no liability whatsoever for any direct or consequential loss arising from any use of this report or its contents. This report is for private circulation only and may not be reproduced, distributed or published by any recipient for any purpose without prior express consent of AIICO Capital. Users of this report should bear in mind that investments can fluctuate in price and value. Past performance is not necessarily a guide to future performance.
AIICO Capital is regulated by the Securities and Exchange Commission, and is licensed to provide fund and portfolio management services in Nigeria.
