Financial Markets Today

Financial Markets Today

Global financial markets turned highly volatile today, with global benchmark equity indices dropping day-on-day while government treasuries also declined on increasing interest from investors. This comes on the back of renewed concerns of a slowdown in global economic growth, after the International Monetary Fund (IMF) lowered its outlook for global economic growth in 2019 for a 2nd time in 5 months at 3.3% vs previous 3.5%, and on continued uncertainties of U.S./China trade tensions. This also comes on escalating U.S./European Union (EU) trade tensions with a possible imposition of new tariffs on ca $11 billion worth of goods.

 

We expect current high global financial market volatility to continue through Q2 2018, on continued trade uncertainties between U.S and China and further escalation of U.S./EU trade tension and further rise in global growth fears.

MONEY MARKETS

CAPITAL MARKETS

FOREIGN EXCHANGE

COMMODITIES

Banking system liquidity was expected to remain positive today, coming from yesterday’s positive opening of ca ₦106.78bn. There was no Open Market Operation (OMO) auction today by the Central Bank of Nigeria (CBN).

Treasury Bills
The treasury bills secondary market continued on a quiet note today, with most activities seen on mid-to-long dated maturities. Average yields lost -2bps day-on-day with the 06 June maturity trading the most to close at 11.36% from 11.91%.

Bank Placements
Open Buy Back (OBB) and Overnight (O/N) rates dropped day-on-day to 15.43% and 16.21% from 19.43% and 20.00%, 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
A more active trading day in the bonds secondary market today, particularly around the mid-to-long end of the curve. Yields generally rose at the mid-to-long end of the curve, with the February 2028 maturity traded the most to close at 14.61%.

Eurobonds

A quiet day in the nations Eurobonds market today. Average yields shed ca -2bps day-on-day with the February 2038 and January 2049 maturities losing -2bps and -1bps to close at 7.70% and 8.23% respectively.

Equities
The Nigerian equities market declined marginally today, as the Nigerian Stock Exchange All Share Index (NSE ASI) lost ca -0.04% day-on-day to close at 29,149.46pts, with market’s year-to-date returns at -7.26%. This was majorly on the back of losses in Dangote Cement Plc (-0.27%) and Zenith Bank Plc (-0.25%).

The NSE Consumer Goods, Banking and Industrial indices all lost ca -17bps, -34bps and -13bps respectively, while the NSE Oil & Gas index gained +39bps day on day. Sterling Bank Plc led the volume chart with 119.72m units while Guaranty Trust Bank Plc led the value chart with ca ₦787.99m worth of trades.

The Naira depreciated against the dollar in the interbank market to ₦307.00/$1 from ₦306.95/$1, while it remained stable against the dollar in the parallel markets today, at ₦360/$1. It was also stable against the Pound sterling and the Euro at ₦475/₤1 and ₦405/€1 respectively, in the parallel market. In the Nigerian Autonomous Foreign Exchange (NAFEX) window, the Naira depreciated against the Dollar at ₦360.44/$1 from ₦360.27/$1.

Oil prices stumbled by the most in more than two weeks as Russia dampened the outlook for further supply cuts, indicating its desire to raise its output by the annual general meeting of the Organisation of Petroleum Exporting Countries (OPEC) in June. Brent crude oil price lost ca -0.51% day-on-day at $70.72pb, while WTI lost ca -0.39% day-on-day at $64.03pb, as at report time. Spot gold gained ca +0.60% to close at $1,309.4 from $1,301.60 per ounce.

Top 5 Equitiy Advancers
Name (Symbol) Closing Price Gain(N) % Change
GUARANTY 34.00 2.45 +7.77%
CHAMS 0.28 0.02 +7.69%
STANBIC 46.00 2.80 +6.48%
UNIONDAC 0.23 0.01 +4.55%
SOVRENINS 0.24 0.01 +4.35%
Top 5 Equity Decliners
Name (Symbol) Closing Price Gain(N) % Change
NEM 2.10 -0.23 -9.87%
ETI 10.50 -0.75 -6.67%
LIVESTOCK 0.50 -0.03 -5.66%
NIGERINS 0.20 -0.01 -4.76%
NASCON 19.05 -0.95 -4.75%
Benchmark T-Bills Discount Rates
09-Apr-19 08-Apr-19 Change in Rates
65Days                                      . 11.50% 11.53% -0.03%
156Days- 12.97% 13.02% -0.05%
324Days. 12.99% 13.00% -0.01%
Source: FMDQ DQL for 09 April 2019
*T-Bills Discount Rates are slightly different from current market rates
Benchmark FGN Bond Yields
09-Apr-19 08-Apr-19 Change in Yield
3 yrs: 16.00% 15-Jul-2021 14.40% 14.40% 0.00%
5 yrs: 15.54% 27-Apr 2023 14.73% 14.42% 0.31%
10 yrs: 16.29% 17 Mar 2027 14.65% 14.46% 0.19%
20 yrs: 16.25% 18-Apr 2037  . 14.44% 14.34% 0.10%
Source: FMDQ DQL for 09 April 2019
Benchmark FGN EuroBond Yields
09-Apr-19 08-Apr-19 Change in Yield
3 yrs: NGERIA 6 3/4 01/28/21 4.88% 4.88% 0.00%
5 yrs: NGERIA 6 3/8 07/12/23 5.44% 5.46% -0.02%
10 yrs: NGERIA 6 1/2 11/28/27 6.64% 6.66% -0.02%
20 yrs: NGERIA 7.696 02/23/38 7.70% 7.72% -0.02%
30 yrs: NGERIA 9.248 01/21/49 8.23% 8.24% -0.01%
Source: FMDQ DQL for 09 April 2019
AIICO Money Market Fund (AMMF)
Net Yield (As at current date) 13.60% 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-19 114 11.10% 11.50%
17-Oct-19 191 12.55% 13.43%
07-Nov-19 212 12.50% 13.48%
16-Jan-20 282 12.50% 13.84%

 

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 70.72 (-0.51% d/d)
External Reserve (US$’billion) 44.648 (+3.55% ytd)
GDP % (Q4 2018) +2.38% (Q3 2018: +1.81% y/y)
NSE All Share Index (ASI) 29,149.46 (-0.04% d/d; -7.26% ytd)
Market Capitalisation (₦’Trillion) 10.95

Financial Markets Update – 09 April 2019

 

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