Financial market update

03 April 2012, Sweetcrude, Lagos – Local and international financial market update.
NIGERIA: The Nigerian Deposit Insurance Corporation has said it has disbursed N2bn to 71,000 depositors of 103 closed microfinance banks in the country. The Managing Director of the corporation, Alhaji Umaru Ibrahim, announced this on Saturday at the NDIC Special Day at the ongoing 23rd Enugu International Trade Fair. Ibrahim, who was represented by the Controller, South-East, NDIC, Mr. Gidado Sambo, said arrangements had been made to transfer the payment of the depositors to eight agent banks across the country.

EUROPE: European stocks climbed the most in almost three weeks on Monday, erasing earlier losses, as reports showed manufacturing expanded more than forecast in the U.S. and China. The benchmark Stoxx Europe 600 Index advanced 1.5 percent to 267.16 at the close, the biggest gain since March 13. The gauge climbed 7.7 percent in the first quarter, its best start to a year since 2006, boosted by the European Central Bank’s 1 trillion euros ($1.3 trillion) in loans to the region’s financial firms.

INDIA: The BSE India Sensitive Index rose 0.4 percent to 17,478.15 at the close yesterday amid expectation the central bank may lower borrowing costs after manufacturing grew at the slowest pace in three months in March.. The gauge has risen 13 percent this year as optimism the Reserve Bank of India will ease monetary policy spurred foreign funds to buy a record $8.9 billion of shares this year even as profit growth slows, interest rates remain at a three-year high and rising oil costs threaten to stoke inflation that’s already the fastest among the BRIC group of biggest emerging economies.

Bonds- A short rally recorded early in the day on Monday across the curve, demand remains weak though still reacting from economic indicator adjustments last week, volumes expected to remain low this week as we approach the easter break.

Bills- Quiet session yesterday, yields traded flat with no movement across board.

Money Market – OBB and Unsecured rates close at 14.75% and 15.50% respectively, cash markets remain illiquid.


CBN offered $150mio and sold $100.02mio, also appreciated 11 points to 157.4590 [inc. the 1% commission] against the previous auction.

Weighted average: 155.5398 [inc. the 1% commisssion]

                               Hi                    Low              Close            Prev.Close
USD/NGN   157.55/65    157.38/48    157.54/64   157.50/60

NIBOR (%)                             LIBOR (%)
O/N               15.4167          USD 1 month            0.2413
7 Day            15.8333          USD 2 month           0.3488
30 Day          16.1667          USD 3 month          0.4682
60 Day          16.4583          USD 4 month          0.5669
90 Day          16.7500         USD 6 month          0.7334
USD 12 month        1.0497
Y/Y Consumer Inflation February 2012 :          11.90%
FX Reserves: 30 March 2012               (USD bn) 35.600
MPR                                                                                    12.00%
Source: FMD and CBN

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