Financial market update

16 March 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA:  The naira weakened for the first time in three days yesterday as lenders increased their demand for dollars after the government issued gasoline import permits for the second quarter. Nigeria approved a tender for 3.57 million metric tons of gasoline imports for the second quarter on March 12. Forty-two fuel retailers including NNPC, Conoil Plc and Oando Plc were issued permits, the Petroleum Products Pricing Regulatory Agency said.

EUROPE: European stocks were little changed near the highest level since July amid concern the best start to a year since 1998 is outpacing the outlook for economic growth and company earnings. The Stoxx Europe 600 Index slipped 0.1 percent to 270.08 as of 3:53 p.m. in London on Thursday. The benchmark measure has surged 10 percent this year amid optimism that the euro area will contain its sovereign-debt crisis and as U.S. economic data topped forecasts.

CHINA: Foreign direct investment in China fell 0.9 percent in February, its fourth straight decline, as companies reined in spending amid a slowdown in the world’s second-biggest economy and the prolonged European debt crisis.

INDIA: India’s budget gap widened to 4.35 trillion rupees ($86.3 billion) in the 10 months through January, exceeding the government’s target of 4.13 trillion rupees for the year ending March 31, the most recent data on the website of the Controller General of Accounts show. A year earlier, the shortfall was only 58.3 percent of the annual goal. The deficit may increase to 6.1 percent of gross domestic product this fiscal year, according to Nomura Holdings Inc., more than Finance Minister Pranab Mukherjee’s goal of 4.6 percent.

Bonds – No change in market pattern or significant activity yesterday as market continued to remain quiet.

Bills – Demand kept feeding into the long dated high yielding maturities with focus on the February & March 2013s.

Money Market – OBB & unsecured rates rising to 14.50% & 15.50% respectively as liquidity levels drop.

                                   Hi            Low            Close          Prev.Close

NIBOR(%)                         LIBOR (%)
O/N               15.2500    USD 1 month            0.2418
7 Day            15.5833     USD 2 month           0.3505
30 Day         16.0833     USD 3 month           0.4737
60 Day         16.3750     USD 4 month           0.5810
90 Day         16.6667     USD 6 month           0.7425
USD 12 month         1.0537
Y/Y Consumer Inflation January 2012 :      12.60%
FX Reserves: 08 March 2012          (USD bn) 34.682
MPR                                                                               12.00%
Source: FMD and CBN

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