03 January 2012, Sweetcrude, Lagos – Local and international financial market update.
· GLOBAL: Governments of the world’s leading economies have more than USD7.6 trillion of debt maturing this year. Interest costs are expected to rise on the back of the down grade of the US and 15 European nations being put on a ratings watch for possible downgrades.
· INDIA: Indian government said on Jan 1 it will allow overseas individual investors to buy local equities directly in a move to broaden foreign flows into the nation’s USD1 trillion stock market. Currently overseas retail investors can only buy Indian shares via participatory notes and derivatives.
· ASIA: Asian stock markets rose with a regional gauge heading for a three week high as manufacturing growth from Australia, China and India added to optimism the regions economies will withstand Europe’s sovereign debt crisis.
Economic / Central Bank News
· President Goodluck Jonathan appoints Christopher Kolade, former high commissioner to the UK to head a new board created to oversee the spending of the funds previously used for gasoline subsidies. A 22 member Subsidy Reinvestment and Empowerment Programme Board will include representatives from the parliament, labor unions and the country’s six political zones along with four ministers including finance minster Ngozi Okonjo-Oweala.
· Bonds and Bills – Activity remained muted in the markets going into the close of 2011.
· Money Market – OBB & unsecured O/N 13.50% & 14.50% respectively.
Hi Low Close Prev.Close
USD/NGN 162.90/00 159.15/25 159.60/70 159.60/70
NIBOR(%) LIBOR (%)
O/N 14.0830 USD 1 month 0.2953
7 Day 14.6250 USD 2 month 0.4271
30 Day 15.2500 USD 3 month 0.5810
60 Day 15.5830 USD 6 month 0.8085
90 Day 15.8750 USD 12 month 1.0031
Y/Y Consumer Inflation Nov 2011 : 10.50%
FX Reserves: 29 December 2011 (USD bn) 32.89
Source: FMD and CBN