Financial Markets Today

Financial Markets Today

Benchmark equity indices in the Eurozone gained today, after better than expected economic growth data for Q1 2019, with GDP for the zone growing by 0.4% year-on-year vs market analysts expectation of a 0.2% growth. This comes after U.S. data also showed a faster economic expansion in Q1 2019 of 3.2% and rise in consumer spending to its highest in almost 10years. Both the German DAX and French CAC appreciated by ca +0.13% and +0.10% respectively.

We do not expect the U.S. Federal Reserve Bank would be in a rush to adjust its current dovish monetary stance, given continued mixed economic data from the U.S. economy and expect it to maintain its current 2.5% benchmark interest rate through H1. We also see the European Central Bank (ECB) maintaining current dovish monetary stance in the near term as well, with the aim to further boost economic activities in the Eurozone.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity opened positive today at ca +₦238bn from negative ca -₦53.8bn yesterday. There was no Open Market Operation (OMO) auction by the Central Bank of Nigeria (CBN) today.

Treasury Bills
An active day in the treasury bills secondary market today, as market buoyed by improved interbank liquidity demanded short-to-mid dated maturities. Average yields shed ca -1bps day on day, with the 08 August 2019 maturity closing 12.03% from 12.05%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates traded lower day-on-day at 8.96% and 9.82% from 17.86% and 18.57%. 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 was largely quiet today with trading activities mainly on two maturities, April 2023 and February 2028. Both papers closed at 14.48% and 14.50% respectively from 14.54% and 14.55% the previous day.

Eurobonds

There was demand in the nations Eurobonds market today, with some interest seen on selected maturities. Average yields marginally shed ca -1bps day-on-day with the January 2049 maturity closing at 8.44% from 8.45%.

Equities

The Nigerian equities market closed negative today for a 3rd consecutive session, with the Nigerian Stock Exchange All Share Index (NSE ASI) shedding ca -1.22% day-on-day to close at 29,159.74pts, and market’s year-to-date returns at -7.22%. This was mainly due to losses in Dangote Cement Plc (-3.23%), Guaranty Trust Bank Plc (-1.35%) and Stanbic IBTC Holding Plc (-3.77%).

The NSE Banking and Oil & Gas gained ca +8bps and +150bps respectively, while the NSE Consumer Goods and Industrial indices lost ca -67bps and -319bps. Cement Company of Northern Nigeria Plc led both the volume and value charts with 132.33m units traded at ca ₦1.86bn respectively.

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 respectively in the parallel market. The FMDQ Nigerian Autonomous Foreign Exchange (NAFEX) Fixing rate depreciated against the Dollar to close at ₦360.40/$1 from ₦360.36/$1.

Oil prices rose today, on reports the Organisation of Petroleum Exporting Countries (OPEC) and its allies led by Saudi Arabia were seeking a deal to extend its current production-cut deal beyond June to cover all of 2019. Brent crude oil price gained ca +1.11% day-on-day at $72.84pb, while WTI gained ca +0.55% day-on-day at $63.85pb, as at report time. Spot gold lost ca +0.2653% to close at $1,284.90 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
JAPAULOIL 0.33 0.03 +10.00%
CAVERTON 2.97 0.27 +10.00%
UAC-PROP 1.65 0.15 +10.00%
FO 35.30 3.20 +9.97%
DANGFLOUR 18.80 1.70 +9.94%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
CUTIX 1.85 -0.20 -9.76%
GOLDINSURE 0.40 -0.04 -9.09%
CCNN 14.00 -1.35 -8.79%
UNITYBNK 0.80 -0.05 -5.88%
VETINDETF 11.05 -0.57 -4.91%
Benchmark T-Bills Discount Rates
29-Apr-19 29-Apr-19 Change in Rates
52 Days                                      . 10.12% 10.43% -0.31%
142 Days 12.87% 12.76% 0.11%
338 Days. 12.68% 12.68% 0.00%
Source: FMDQ DQL for 30 April 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
30-Apr-19 29-Apr-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.86% 14.76% 0.10%
5 yrs: 15.54% 27-Apr 2023 14.48% 14.60% -0.06%
10 yrs: 13.98% 17 Mar 2027 14.50% 14.55% -0.05%
20 yrs: 16.25% 18-Apr 2037  . 14.55% 14.50% 0.05%
Source: FMDQ DQL for 30 April 2019
Benchmark FGN EuroBond Yields
30-Apr-19 29-Apr-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.92% 4.92% -0.02%
5 yrs: NGERIA 6 3/8 07/12/23 5.57% 5.57% 0.0%
10 yrs: NGERIA 6 1/2 11/28/27 6.76% 6.78% -0.02%
20 yrs: NGERIA 7.696 02/23/38 7.84% 7.85% -0.01%
30 yrs: NGERIA 9.248 01/21/49 8.44% 8.45% -0.0%
Source: FMDQ DQL for 30 April 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.11% 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 93 8.70% 8.90%
17-Oct-19 170 12.25% 12.99%
07-Nov-19 191 12.35% 13.20%
16-Jan-20 261 12.30% 13.49%
Select Macro-economic Indices
Inflation % (March 2019) 11.25 (-1.66% ytd)
PMI (March 2019) 57.40
MPR (%) 13.5 (-5%/+2% around mid-point)
CRR (%) 22.5
Brent Crude Price US$ pbbl 72.84 (+1.11% d/d)
External Reserve (US$’billion) 44.802 (+2.27% ytd)
GDP % (Q4 2018) +2.38% (Q3 2018: +1.81% y/y)
NSE All Share Index (ASI) 29,195.746 (-1.22% d/d; -7.22% ytd)
Market Capitalisation (₦’Trillion) 11.09

Financial Markets Update – 30 April 2019

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