26 February 2018, Sweetcrude, Lagos — The local and international financial market products and services update.
NIGERIA: The four-day rally that saw investors in the Nigerian Stock Exchange, NSE, garner N234 billion last week will continue this week as investors continue to take a position ahead of the release of full-year 2017 financials by the quoted companies.
With the market breath remaining markedly positive and as investors scramble to take position before the release of full-year 2017 earnings, we foresee another positive session on Monday,”
FX: The Naira held a sub $/N 361.50 for 3 weeks in the I&E window as liquidity remained decent to meet the demand. Total turnover traded last week $913.88m with 56% of the trades closed in the tight range of $/N 359.01 – 360.50. Turnover is up by 15.70% from last week.
FIXED INCOME: Pockets of demand in bonds from locals and offshore accounts on Friday. Yield changes suggest street maybe light on inventory and highest traded volume remains on the Mar 2027s (N18.625bn on Friday).
Money market conditions continue to support demand for bills and will remain so this week (FAAC and FX refunds expected).
For the second time in a roll, tenors at the OMO remained unchanged. N52bn of the 23 Aug 2018 bill was sold at 14.4% discount.
CHINA: China’s Communist Party is set to repeal presidential term limits in a move that would allow Xi Jinping to rule beyond 2023, completing the country’s departure from a political system based on collective leadership.
The party’s Central Committee announced Sunday it was seeking to end a constitutional provision that bars the head of state from serving more than two consecutive terms. That would remove the only formal barrier to Xi, who is also party leader and commander-in-chief of the military, staying in power indefinitely.
U.K: Britain’s services sectors, making up the biggest part of the economy, saw growth improve this month, helped by a rebound at restaurants, bars and other consumer industries.
After faster inflation meant a rough ride for household spending in 2017, the figures from the Confederation of British Industry suggest some improvement. Consumer services growth was the strongest in a year, while confidence also picked up.
The report also showed that business services such as accountancy and marketing expanded at the fastest pace in more than two years in February.
The U.K. economy is lagging behind most other advanced nations as the decision to leave the European Union damps investment and fans inflation.
COMMODITIES: Oil gained as Libya’s crude exports from a key terminal were disrupted and Saudi Arabia pledged that global producers will ease their output curbs without shocking the market.
Futures in New York rose as much as 0.6%, after rising 3% the previous two sessions. Libya’s crude loadings from the Mellitah terminal will be “modified” after protests impeded output at the El-Feel field. Cuts by OPEC and its allies may be phased out in 2019 in a way that won’t disturb the market, Saudi oil minister Khalid Al-Falih said. Still, U.S. supply remains a threat, with the nation’s rig count rising for a fifth week to the highest since April 2015.
Macro Economic Indicators
Inflation rate (Y-o-Y) for January 2017 15.13%
Monetary Policy Rate current 14.00%
FX Reserves (Moving Avg Bn $) as at February 21, 2018, 41,816
Money Market Highlights
30 Day 14.8678
90 Day 15.9172
180 Day 17.9448
USD 1 Month 1.63120
USD 2 Months 1.77781
USD 3 Months 1.95625
USD 6 Months 2.18188
USD 12 Months 1.72400
Tenor Maturity Yield (%)
91d 31-May-18 15.00
182d 23-Aug-18 15.58
364d 14-Feb-19 15.43
2y 13-Feb-20 14.00
3y 17-Jan-21 13.77
5y 27-Jan-22 13.52
Indicative Currency Exchange Rates
USDNGN (I&E) 359.00 360.00
EURUSD 1.2216 1.2418
GBPUSD 1.4024 1.4141
USDJPY 106.64 106.95
GBPEUR 1.1296 1.1500
USDZAR 11.4704 11.6738
EURNGN 442.98 444.82
GBPNGN 504.98 506.38