Financial Markets Today

Financial Markets Today

Global equity indices recovered today, with the U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ, German DAX, London’s FTSE and Chinese SHANGHAI indices all gained ca +0.08%, +0.36%, +0.34%, +0.08%, +0.56% and +2.12% respectively day-on-day. This comes on the back of the announcement of the renewed U.S./China trade negotiations, with a Reuters report indicating new trade offers by the Chinese government to the U.S., as yields on the 10yr treasuries in developed markets (DMs) recovering from their lowest in 15-months.

 

With continued rising fears of a global economic slowdown in 2019 across the world’s largest economies – U.S. and China, gradually rising fears of another Emerging Market (EMs) currency crisis and contagion impact, and rising volatility in global financial markets in the near term, we expect increasing investors’ interest in safe-haven risk assets of developed economies (DMs) in the near term.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened on a positive note today, at ca ₦148.785bn from previous day’s opening of ₦68.612bn. There was no Open Market Operation (OMO) auction today by the Central Bank of Nigeria (CBN).

Treasury Bills

A bullish trading session in the treasury bills secondary market today, on the back of inflow from maturing Open Market Operations (OMO) treasury bills of ca ₦60bn. Most of today’s activities was seen at the long end of the curve, with average rates losing ca -2bps day-on-day and the 27 February 2020 maturity trading the most to close at 12.90% from 13.07%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates dropped day-on-day to 10.07% and 10.71% from 15.14% and 15.50% %, 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.

Bonds
The bonds secondary market saw plenty of volatility but few transactions in reaction to the closing rate at yesterday’s Primary Market Auction (PMA). Most of the activities were at the mid-end of the curve. Average yield lost ca -23bps day-on-day, with the March 2025 maturity trading the most to close at 13.99% from 14.26%.

Eurobonds

Yield levels in the nation’s Foreign market rose further today, on the back of fears of another currency crisis contagion after recent currency issues in Turkey. Average yield gained ca +15bps day-on-day, particularly the January 2031 maturity gaining ca +17bps day-on-day

Equities
The Nigerian equities market appreciated today, with the Nigerian Stock Exchange All Share Index (NSE ASI) marginally gaining ca +0.01% day-on-day to close at 30,833.50pts, and market’s year-to-date returns at -1.91%. This was largely on the back of gains in Guaranty Trust Bank Plc (+2.50%).

The NSE Industrial, Oil & Gas and Consumer Goods indices lost -135bps, -13bps and -8bps respectively, while the NSE Banking indices gained ca +4bps. Wema Bank Plc led both the volume and value charts with 1.7bn units valued at ₦1.2bn.

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 ₦360.39/$1 from ₦360.23/$1.

Brent crude oil prices declined further today, off the back of ca 2.8 million barrels growth in Shale crude oil stockpiles last week, with the U.S. President calling for increased output from the Organisation of Petroleum Exporting Countries (OPEC). Brent crude oil price lost ca -0.46% at $67.52pb, while WTI lost ca -0.49% at $59.12pb, as at report time. Spot gold lost ca -1.56% to $1,296.00 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
CILEASING 7.27 0.72 +9.90%
NASCON 18.20 1.80 +9.89%
PRESCO 62.00 6.00 +9.68%
WEMABANK 0.73 0.07 +9.59%
ABCTRANS 0.49 0.04 +8.16%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
SOVRENINS 0.22 -0.02 -9.09%
UBN 7.10 -0.50 -7.04%
AIICO 0.75 -0.04 -5.33%
CCNN 20.00 -1.00 -5.00%
PZ 10.00 -0.50 -5.00%
Benchmark T-Bills Discount Rates
28-Mar-19 27-Mar-19 Change in Rates
84Days                                      . 12.03% 12.23% -0.20%
175Days 13.15% 13.37% -0.22%
350Days. 12.76% 12.82% -0.06%
Source: FMDQ DQL for 28 March 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
28-Mar-19 27-Mar-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.06% 14.67% -0.61%
5 yrs: 15.54% 27-Apr 2023 13.81% 14.17% -0.36%
10 yrs: 16.29% 17 Mar 2027 14.14% 14.17% -0.03%
20 yrs: 16.25% 18-Apr 2037  . 14.16% 14.14% 0.02%
Source: FMDQ DQL for 28 March 2019
Benchmark FGN EuroBond Yields
28-Mar-19 27-Mar-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 5.17% 5.00% 0.17%
5 yrs: NGERIA 6 3/8 07/12/23 5.69% 5.53% 0.16%
10 yrs: NGERIA 6 1/2 11/28/27 6.89% 6.73% 0.16%
20 yrs: NGERIA 7.696 02/23/38 7.99% 7.85% 0.14%
30 yrs: NGERIA 9.248 01/21/49 8.49% 8.34% 0.15%
Source: FMDQ DQL for 28 March 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.81% 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-19 125 11.15% 11.59%
17-Oct-19 202 12.60% 13.54%
07-Nov-19 223 12.60% 13.65%
16-Jan-20 293 12.50% 13.89%

 

Select Macro-economic Indices
Inflation % (February 2019) 11.31 (-1.14% ytd)
PMI (March 2019) 57.40
MPR (%) 14 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 67.52 (-0.46% 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)  30,833.50 (+0.01% d/d; -1.90% ytd)
Market Capitalisation (₦’Trillion) 11.59

Financial Markets Update – 28 March 2019

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