Continued investors’ optimism of global financial markets further improved value of risk assets today, as global equities markets rallied for a 2nd consecutive day. Most global benchmark indices of developed economies gained day-on-day with the U.S. Dow Jones Industrial Average (DJIA), S & P 500, NASDAQ, London’s FTSE and Chinese SHANGAI indices all gained ca +0.68%, +0.47%, +0.74%, +2.04% and +1.30% respectively. This comes despite rising expectation of a slowdown in global economic growth in 2019 and uncertainties of U.S./China trade tensions.
We expect current positive investors’ optimism to continue in the near term, with most Central Banks in developed economies expected to maintain their respective current monetary position in Q1 2019 and as the U.S. Federal Reserve Bank is expected to keep benchmark interest rate unchanged till the end on Q1 2019, in tandem with growth in the U.S.
Banking system liquidity was expected to open positive today. The Central Bank of Nigeria (CBN) conducted an Open Market Operation (OMO) auction today, in line with its current tight monetary stance.
A relatively quiet trading day in the treasury bills secondary market. Some sell-off was seen particularly at the short-end of the curve, with the 09 May 2019 maturity trading the most to close at 11.63% from 10.31%. Average rate gained ca +8ps day-on-day.
|Amount Offered:||₦ 10.00billion||₦ 20.00billion||₦ 50.00 billion|
|Subscription:||₦ 44.45billion||₦ 14.20billion||₦64.89 billion|
|Amount Allotted:||₦ 44.45billion||₦ 14.20billion||₦ 64.89 billion|
|Range of bids:||11.9000% – 11.9000%||13.5000% – 15.0000%||15.0000% – 15.0000%|
Open Buy Back (OBB) and Overnight (O/N) rates rose to 19.50% and 20.92% from 16.83% and 17.77%. 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.
Continued quietness in the bonds secondary market today, with very few trades seen particularly at the mid-end of the curve. The March 2025 maturity traded the most to close at 14.90% with average yields gaining ca +8bps day-on-day.
The Nigerian equities market appreciated for a 3rd consecutive trading day, with the Nigerian Stock Exchange All Share Index (NSE ASI) gaining ca +0.45% day-on-day to close at 30,773.57pts, with market’s year-to-date returns at -2.09%. This was mainly on the back of gains in Guaranty Trust Bank Plc (+0.74%) and Nigerian Breweries Plc (+0.13%).
The NSE Banking, Oil & Gas and Industrial indices gained ca +21bps, +39bps and +22bps respectively day-on-day, while the NSE Consumer Goods index lost ca -14bps. Guaranty Trust Bank Plc led both the volume and value charts with 49.24m traded at ₦1.67bn.
The Naira appreciated against the dollar at the interbank market window today, at ₦306.70/$1 from ₦306.75/$1. In the parallel market, it remained stable against the Dollar and Euro at ₦360/$1 and ₦411/€1, while appreciating against the Pound Sterling at ₦472/₤1. The Naira appreciated at the Nigerian Autonomous Foreign Exchange (NAFEX) window at ₦362.21/$1 from ₦362.50/$1
Crude oil prices dropped further today, on rising investors’ fears of a slower global economic growth as U.S. factory data released today indicated a month-on-month drop demand for U.S.-made goods, machineries and electrical equipment. Brent crude oil price declined by ca – 0.78% at $62.02pb, while WTI crude also lost ca -1.58% at $53.70pb, as at report time. Spot gold dropped ca -0.06% day-on-day at $1,318.50 per ounce.
|AIICO Money Market Fund (AMMF)|
|Net Yield (As at current date)||13.20% per annum|
|Added Benefit||Personal accident insurance cover|
|AIICO Capital Guaranteed Income Note (GIN) Rates p.a.|
|Amount (NGN)||30 Days||60 Days||90 Days||180 Days||364 Days|
|10,000,001 – 50,000,000||10.00||10.50||11.00||12.00||13.00|
|50,000,001 – 100,000,000||11.00||11.25||11.50||12.50||14.00|
|100,000,001 – 400,000,000||12.00||12.25||12.50||13.00||14.50|
|Trading Treasury Bills Rates p.a.|
|Maturity Dates||Tenor (Days)||Discount Rate||Effective Yield|
|Select Macro-economic Indices|
|Inflation % (December 2018)||11.44 (-25.57% ytd)|
|PMI (December 2018)||61.10|
|MPR (%)||14 (-5%/+2% around mid-point)|
|Brent Crude Price US$ pbbl||62.02 (-0.78% d/d)|
|External Reserve (US$’billion)||43.17 (+0.11% ytd)|
|GDP % (Q3 2018)||+1.81% (Q2 2018: +1.50% y/y)|
|NSE All Share Index (ASI)||30,773.57 (+0.09% d/d; -2.09% ytd)|
|Market Capitalisation (₦’Trillion)||11.48|